The first nine months of 2023 have seen big-name retailers including David’s Bridal, Bed Bath & Beyond and Party City file for bankruptcy. And more could be on the way.
Moody’s Investors Service in July said defaults in retail and apparel would continue to rise, jumping from 6% to 8.6% in the following 12 months as weakening consumer spending and high product, labor and freight costs weigh on businesses. And in a Sept. 20 report, S&P Global Ratings warned that the risk of a U.S. recession in the next 12 months, while lower than the start of the year, was still elevated.
