Household retail names, many owned by private equity firms, have been casualties in recent years as the industry faces an uncertain future. What once seemed to be a solid bet turned out to be less certain than initially thought, and the secular shift underway now will require the industry to reinvent itself.
In Private Debt Investor, RK&O partner Gregory G. Plotko discussed how the the acquisition of retail stores by private equity firms has changed since the financial crisis, "Credit was more easily available and contained less covenants, after the crisis, we experienced a dramatic tightening of credit along with a systematic change in consumer trends and the growth of online shopping. Liquidity has become a major concern."
"Retail: Left on the Shelf" - Private Debt Investor (subscription required)