The list of bankruptcy filings in the fashion and retail space continues to grow longer with each passing day, so much so that some are beginning to wonder: are they banking on Chapter 11 filings as the way out of 2020’s unending pressures?In some cases, maybe. In others, maybe not. But companies wondering whether they should file and take advantage of the process might want to think twice before taking the plunge.Once a company files for bankruptcy, there’s no going back. They’ll be obliged to abide by certain rules that, in some cases, can be onerous. Bankruptcy is still the restructuring tool it always was—it should not be considered the new fashion strategy to evade the pandemic’s impact.
