Toys R Us Bankruptcy – more to come?

It’s as inevitable as father time – another brick and mortar store bites the dust as retailers deal with the all-encompassing reach and growth of Amazon. The ease and convenience of using Amazon for commodity type purchases like toys will continue to drive retailers out of business. If your business model is to compete on price and convenience, you better have your act together. Amazon is the WalMart of the internet, and nobody can match their logistics and convenience.

Other retailers that also filed for bankruptcy this year include: Aerosoles, BCBG, Gymboree, Payless, RadioShack, The Limited, True Religion, Vitamin World, and Wet Seal. Most of these bankruptcy filings include store closings, which means layoffs, and debt restructuring. This adds to the bankruptcy filing casualty list from 2016 of familiar names like: Aeropostale, American Apparel, Pacific Sunwear, and Sports Authority. These bankruptcy filing and store closings are an indication of something much larger going on in the economy. The business cycle is in the final throes of struggling to maintain momentum, like a car that is sputtering just before it runs out of gas.

What are the chances that more store closings and bankruptcy filings are coming? And what are you doing in your job and your industry to make sure that you are not the next casualty of “restructuring” in the name of profitability? You need to be aware of your surroundings and be prepared for the potential fallout. Do you have your emergency fund ready? Are you prepared to withstand the coming storm?

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