One by one, they fell down.
In the past three years, a slew of familiar and beloved staples — Sports Authority, Payless ShoeSource, Sports Chalet, Aerosoles and many of their peers — flocked to bankruptcy court seeking cover from a barrage of retail disruptors. The rapid rise of e-commerce, the growing importance and convenience of Amazon and an overwhelming shift in consumer preference toward experiential spending have become familiar ailments cited by the industry’s struggling herd.
“The key [point] is [that this has been] the perfect storm,” explained Howard Berkower, attorney and partner at law firm McCarter & English. “The private equity formula is to be highly levered [with debt] so that they can buy out [a firm’s] existing owners or founders. They’re not looking to have the business go through a major shift.”
Click to read full article: “Private Equity Pumped Billions into Dozens of Shoe Brands — Then They Went Bankrupt”