Coresight Research reported that around 25,000 U.S. retail stores are likely to close permanently in 2020, up from 9,500 last year. According to S&P Global Market Intelligence, the number of retail bankruptcies in 2020 has already reached 46, surpassing last year’s 25.
- The number of bankruptcies filed in 2020 is the highest since 2010. In 2010, 48 bankruptcies were filed following the recession.
- Around 6,000 of the 9,500 store closures were due to bankruptcies. The rest were from solvent companies such as Gap and Macy's.
- As of August 2020, 4,779 commercial bankruptcies were filed, up 28% YoY. However, 40,085 non-commercial bankruptcies were filed in August, down 42% when compared to last year.
- More bankruptcies are expected in Q4, as companies surviving because of rent deferrals might face rent burdens in the near future.