Bloomberg Law
Jan. 15, 2021, 5:13 PM

ANALYSIS: The Latest Trends in Fashion Bankruptcies, Part 1

Jeffrey P. Fuller
Jeffrey P. Fuller
Legal Analyst

Several prominent fashion retailers sought Chapter 11 bankruptcy relief in 2020. Many of these companies, mostly reliant on sales from brick-and-mortar locations, were already showing signs of wear and tear, but the Covid-19 pandemic and the accompanying restrictions on in-person commerce emptied shopping centers and diminished sales for months. While online shopping remains available, social distancing and cancellation of events also have driven down consumer demand for the latest styles. Ultimately, the economics of 2020 pushed many of these companies into bankruptcy court.

Some trends can be seen within these fashion bankruptcies in 2020. This analysis explores three such developments: ...