November 07, 2017 06:17 AM
Stores where a lot of you shop right here in Rochester might be in financial trouble. More and more retailers are closing their stores and filing for bankruptcy.
Online shopping is taking over and shoppers prefer the convenience of retail giants like Amazon. For a growing number of retailers who don't have a strong online presence, it's getting tougher to stay afloat. Stores like Rue21, Payless Shoesource, Gander Mountain, and The Limited all filed for bankruptcy this year.
So who's next? It's tough to tell for sure but all of those companies were on Fitch Ratings' bonds or loans of concern watch list. The list means those companies are millions of dollars in debt and that could lead to bankruptcy. Sears, David's Bridal, Charlotte Russe are just a few on that watch list.
As more retailers face huge amounts of debt, George Conboy, chairman of Brighton Securities, tells News10NBC what this could mean for shoppers.
"If some retailers go out of business that will mean less competition which might mean higher prices," Conboy said. "I think a difference going forward will be the giant battle with Amazon and Walmart...those two keep prices competitive so you don't have to worry about paying higher prices anytime soon."
Fitch Ratings' list of retailers with troubling financials is expected to grow in the next 12 to 18 months.
Although the list continues to grow, keep in mind it only represents about 14 percent of retailers, meaning the majority of the industry remains healthy.
Created: November 07, 2017 06:17 AM
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