According to Bloomberg, store retailers are filing for bankruptcy at a record rate during Donald Trump’s first 100 days in the Oval Office. The former reality host has claimed again and again, during and after his presidential campaign, that he would be a job creator. But again and again his promises have proved to be bullshit.
In a little over three months, 14 chains have announced they will seek court protection, according to an analysis by S&P Global Market Intelligence, almost surpassing all of 2016. Few retail segments have proven immune as discount shoe-sellers, outdoor goods shops, and consumer electronics retailers have all found themselves headed for reorganization.
How these companies file bankruptcy (something Trump is familiar with) will determine how much of the cost American taxpayers will pay.
Much of the retail decline is due to online stores outselling land stores. Like the housing bubble, there are too many land stores and not enough customers and this too has also created ”a bubble — that will burst,” according to Urban Outfitters Chief Executive Officer Richard Hayne.
“We are seeing the results: Doors shuttering and rents retreating. This trend will continue for the foreseeable future and may even accelerate.”
There doesn’t seem to be a quick solution for this.
Jim Elder, S&P Global Market Intelligence’s director of risk services, wrote that first quarter results suggest there’s no quick recovery in sight. Sears Holdings Corp., Bon-Ton Stores Inc., and Perfumania Holdings Inc. are among the most vulnerable in the coming year, according to an S&P analysis of public retail companies. Sears acknowledged in a March filing that there is “substantial doubt” about its future. Fitch named retail chains including Nine West Holdings, Claire’s Stores, and children’s clothing outlet Gymboree Corp. in a study late last year. (Representatives from Bon-Ton, Perfumania, Nine West, and Claire’s didn’t immediately respond to requests for comment.)
The Standard & Poor/S&P Global Ratings states the department stores, electronics retail, and apparel shops are at highest risk.
Add another “accomplishment” to Trump’s #100DaysOfShame. Though the problem is mostly stemming from competitive online selling, many, many store employees will find themselves out of jobs — and jobs are something Trump promised there would be more of.
There is no enjoyment that comes with this news, which is bad no matter how one looks at it. And there is no hoping for the failing of retail stores just so Trump can look bad. No, that’s how many Republicans roll. This is to prove, once again, that Donald Trump is a fraud. He can’t make good on his promises, because he didn’t think them through, and he doesn’t know how to think them through because prior to his election, he had absolutely no experience in politics. He also can’t make good on his promises because he’s a scamming, ignorant, lying, ego-driven, deranged and dangerous human being. If mainstream media won’t use these honest adjectives to describe him in their stories — I will.
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