The Limited Plans for Possible Bankruptcy, Liquidation
2016 isn't in the books yet, but we already have what looks to be the first retail bankruptcy of 2017 lined up. The Limited is planning to file for Chapter 11 bankruptcy protection in the coming weeks, according to Bloomberg News. The 240-store women’s apparel chain has been struggling with declining traffic at malls and an oversaturated women's-wear market. The Limited is $100 million in debt and, last month, hired Guggenheim Partners to explore a possible sale.
Total Retail’s Take: The Limited is in the middle of all this with missing key executive leadership. Former CEO Diane Ellis left the company for Chico’s in October; John Buell then took over as interim CEO, but has since left the company. It’s been a difficult year for many mall-based retailers — Ann Taylor’s parent company Ascena Retail reported comparable-store sales fell 11 percent last quarter. 2017 will definitely be a year of change for many mall-based retailers.