The retail industry in the United States is facing a difficult year. As the economy continues to struggle, many companies that had seemed resilient and stable for decades are now struggling with debt, weak revenue, and higher competition.
With bankruptcy looming for some iconic retailers, analysts predict a wave of store closures in the coming months.
AMC Entertainment has been feeling the strain since its stock price shot up 1,000% during the pandemic as it became a meme stock.
Unfortunately, this sudden success was followed by an even steeper decline as the controversy surrounding Sam Bankman-Fried’s FTX and allegations of stock manipulation surfaced.
The world’s largest movie theater chain reported quarterly losses of $287 million in February 2021 and revenues continued to fall throughout the year. This puts AMC at risk of bankruptcy if conditions do not improve soon.
Another company that may be on its way out is Abercrombie & Fitch, which has been around for 130 years targeting teens with clothing apparel.
Inflation rates caused a major plunge in sales this past year and resulted in almost 150 store closings across America.
Analysts have expressed skepticism about whether or not they can stabilize their gross profit margin given current economic conditions – another sign that Abercrombie & Fitch could be closing its doors soon if things don’t turn around quickly enough.
Macy’s is no stranger to bankruptcy court either, filing twice before: once in 1992 and again one decade later in 2003.
Last year they managed to dodge a third bankruptcy filing by securing $4.5 billion in financing but reports show that revenue continues to decrease both online and offline alike leading many to speculate that another filing may be inevitable sooner rather than later due to deteriorating conditions amidst an impending change of leadership at Macy’s headquarters.
JCPenney also seems poised for trouble once more after having filed for Chapter 11 protection just last year when two firms came together to save them from certain closures amidst hefty debts totaling $4 billion dollars at the time.
Despite insisting publicly that all was well upon exiting bankruptcy there has been little financial information released by JCPenny since then aside from reports indicating ongoing volatility under post-bankruptcy ownership putting them back at risk again this year should these trends continue as expected.
This crisis will undoubtedly result in some painful losses for beloved stores, brands, and products – something no American should take lightly or ignore even if it doesn’t directly affect them today because these changes could potentially become permanent over time if we don’t rally together while we still can.
New, Christian-based, Made-in-USA operations Like Amerca’s Cost Club have also begun to take their toll on these ‘Woke’ companies and proud Americans looking for places to spend their money with companies that don’t despise their traditional values.
Here’s the list:
- Abercrombie & Fitch
- Barnes & Noble
- American Eagle Outfitters
- Forever 21
- Foot Locker
- J. Jill
- Casper Sleep
- Alex and Ani
- Brooks Brothers
- Tailored Brands
Will any of these fall in the second half of the year? Some of them? All of them? We’ll see.