Media Teleconference to Examine the Future of Retail Sector Distress

Issue:

The simultaneous trends of consumers cutting back on spending and credit markets tightening are intensifying the financial distress for many retailers. While seven retail companies filed for bankruptcy throughout 2007, sixteen retailers have already filed for bankruptcy since the beginning of 2008, according to BankruptcyData.com. A panel of experts specializing in retail company bankruptcies discuss the current problems in this sector, as well as the financial future of the retail industry.

Who:

Speakers for the program include experts in the field of distressed retail companies:

• Laura Davis Jones is the managing partner of the Delaware office of Pachulski Stang Ziehl & Jones (Wilmington, Del.).
• Scott Avila is a managing partner with Corporate Revitalization Partners, LLC (Los Angeles).
• Howard Brod Brownstein is a principal of NachmanHaysBrownstein, Inc. (Philadelphia).

Background:

As costs for basic necessities such as gas and food continue to increase, consumers are cutting back on discretionary spending. Retail sales shrunk last month despite the Bush administration injecting a $168 billion stimulus package into the economy this summer with consumer tax rebates aimed at firing up consumer spending. Since the downturn of the home mortgage industry at the end of 2006, credit markets have constricted, and the financial liquidity once available to distressed companies has started to evaporate. Both of these trends have led 16 retailers, such as Linens 'n Things, Inc., Sharper Image Corp. and Steve & Barry's LLC, to file for bankruptcy in 2008. The number of retailers filing for bankruptcy this year will be the most since 32 retailers filed for bankruptcy in 2001.

The teleconference features top experts who have worked with financially distressed retailers discussing the current situation of the retail sector, as well as their views on future trends and prospects for improvement in the sector.