Many people in Texas may have heard the phrase Retail Apocalypse bantered about in the mainstream media. The phrase refers to the fact that 2019 was a particularly dismal one for the retail industry. Many well-known stores went out of business, including Payless and Forever 21. While remaining in business, many other stores trimmed back operations considerably. The end result was over 9,000 retail stores closing across the country, more than any other year on record.
According to at least one report, chances are fairly good that more retail stores will run into major financial trouble or file for bankruptcy during the upcoming year. For one, many stores may already be in financial trouble but just have not disclosed the full extent of their distress to date.
Moreover, the economy remains generally strong; were the overall economy to show some signs of shakiness, it could drive more retailers into bankruptcy. Competition in the retail market is already fierce, and those businesses which are not able to adopt to the current market face a tough haul even in the best economic circumstances.
On a practical level, this means that more retail stores that are regional or local to the Tyler area may find it difficult to keep their businesses afloat, as the market conditions for retail continue to be treacherous. These businesses may have to consider filing a Chapter 11 bankruptcy as a possible option.
However, the Retail Apocalypse does not just affect corporations and other companies. One has to bear in mind that, with every store closure, people lose their jobs and, with them, their ability to repay debts and cover expenses. Continued weakness in the retail sector could mean that some Texans will have to consider an individual bankruptcy like a Chapter 13 or Chapter 7.