While everyone likes to point the finger at Amazon, the growing retail apocalypse in America can’t be tied to just one catalyst. Certainly, there is no doubt that Amazon is taking a toll on brick-and-mortar retailers but massive excess capacity, perpetually over-levered capital structures and a constant lack of capital investment have undoubtedly helped accelerate the decline.
As Bloomberg points out today, up until this year, struggling retailers have largely been able to avoid bankruptcy by refinancing to buy more time. Alas, as evidenced by the Toys “R” Us bankruptcy, investor demand for retail debt has waned of late resulting in a whole slew of recent retail failures.
Meanwhile, investor distaste for retail debt comes just as the industry faces a massive wave of maturities over the next five years.
Making matters more difficult is the explosive amount of risky debt owed by retail coming due over the next five…
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