A number of major U.S. retailers crashed and burned last year, led by long-suffering Sears. According to  Moody’s Investors service, 2019 could see a number of other name brick-and-mortar chains tumble into bankruptcy. Major chains that are most vulnerable are J.C. Penney, PetSmart, Pier 1 Imports, J. Crew and Neiman Marcus. The factors that play a big role in the downfall of these companies are debt, e-commerce and fierce competition between retailers. “Companies in this category may have very good liquidity on the surface, but have no capacity to repay or re finance large amounts of debt when it matures,”says Moody. Several of the companies were involved in leveraged buyouts, which often pile debt onto corporate balance sheets and leave little room for error, especially when retail is so competitive.

Along with 126-year old Sears, other retailers to file for bankruptcy protection last year included gifts seller Brookstone, make up and jewelry seller Claire’s, and shoe stores Nine West and Rockport. In the first two months of 2019, Charlotte Russe, Full Beauty Brands, Gymboree and Payless have declared bankruptcy.  Retail bankruptcies led to about 97,000 lay offs last year, the most of any sector. Some more potential retailers that are vulnerable are David’s Bridal, Guitar Center, 99 Cents only store, Fresh Market, Evergreen, TOMS shoes, and Fairway Group Holding. Hearing this news, people have been shocked that the stores they once loved are closing. I went around and asked some ERHS students what they think about all these stores closing.

Kristyn Yamas, a senior said “I am very sad that all these stores are closing, I have been going to all of them ever since I was little.” People are disappointed that all these major stores are closing because one of the major reasons retail is slowing down is because of Amazon. Another senior Skyler Garduno expressed his disappointment. “It’s sad that all these stores are closing because they honestly don’t deserve to, I think Amazon is definitely taking over the industry.”