With brick-and-mortar retail bankruptcies increasing, suppliers are growing alarmed at the possibility of going unpaid should another Chapter 11 filing occur, Bloomberg reported last week.
Suppliers are particularly vulnerable to buyer bankruptcies as they fall low on the payment chain, below secured creditors. To make matters worse, supplier insurance firms have reduced their services as risk runs higher. Bloomberg notes Sears vendors are no longer eligible for short-term financing, or factoring.
