To the surprise of many, for many retailers, the back-to-school selling season has become the second most significant sales volume push, second only to the end of year holiday sales season. The predictions of a number of significant retailers and industry experts point to a dismal 2016 back-to-school sales season which will, in turn, lead to additional retail bankruptcies.
The New York Post recently reported that “teen retailer Claire’s Stores needs a big sales lift from back-to-school or the business will likely go bankrupt.” Claire’s Stores, which has more than 3,000 retail outlets, announced that its overwhelming debt of $2.4 billion combined with a same store sales decline of 5 percent for the 10 weeks ending July 10 points to a possible bankruptcy filing.
