Teen Fashion Retailer Styles for Less Files for Bankruptcy
Styles for Less filed for bankruptcy protection this week, the latest in a string of retailers to file following declining sales. Reuters reports the teen fashion retailer listed assets and liabilities between $10 million and $50 million in its filing in the U.S. Bankruptcy Court, Central District of California on Monday. Styles for Less, which operates about 100 stores in malls and outlets in California, Nevada, Utah, Arizona and Florida, plans to reorganize its debt during the bankruptcy, and was seeking a loan to fund it through the process.
Total Retail's Take: The number of retail bankruptcies in 2017 has been alarming, already surpassing last year's total of nine and set to eclipse the 20 filed during the 2008 financial crisis. Apparel businesses have been hardest hit this year, due in large part to the growth of e-commerce and the crowded market in which they operate. Other retailers to file for bankruptcy this year include Toys"R"Us, The Limited, Wet Seal, BCBG Max Azria and others. The common thread between them all is a reliance on brick-and-mortar stores to drive the lion's share of sales. Traditional retailers must evolve to account for shifting consumer behaviors, or risk enduring the same fate as Styles for Less.