Retail reorganizations fail at an alarming rate. While nearly half of all large retail Chapter 11 cases that begin with aspirations of reorganizing ultimately liquidate, only a small fraction of mega cases in other industries end in a liquidation.

As a result of the retail business model and certain requirements of the U.S. Bankruptcy Code, the fate of nearly all retailers is dependent upon their ability to (i) timely analyze the profitability of their brick-and-mortar footprint, (ii) stay ahead of their ongoing administrative costs, and (iii) demonstrate to creditors that a capital structure reorganization will yield greater returns than a liquidation of inventory.

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