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Retail bankruptcy and the companies that have benefited

Retail bankruptcy and the companies that have benefited
January 19, 2021

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Retail took one of the biggest hits in 2020 as cities were shut down by the pandemic. Many large retailers were barely hanging by a thread before the pandemic but weighed down by slumping foot traffic and sales, especially in strip malls, retail couldn't hang on any longer, and 2020 became the year of significant bankruptcy filings for the industry.


Credit: Unsplash

What is Chapter 11 Bankruptcy?
Most of the retail companies who filed for bankruptcy did so under Chapter 11 so that they could preserve their profitable businesses while doing away with unprofitable stores and debt. The process requires the bankruptcy court to oversee the negotiations the business conducts with landlords, suppliers, and other creditors while management remains in full control of the business. This type of bankruptcy differs from a Chapter 7 filing where everything is liquidated and sold off, and the stores are shut down for good. - PrivCo Knowledge Bank

While retailers are shuffling debt, some companies are benefiting. 

While some companies were bought out of bankruptcy, a small handful of companies were able to emerge out of bankruptcy. 
  • J Crew filed for bankruptcy in May and emerged from proceedings in August. 
  • Neiman Marcus filed for Chapter 11 in May and its reorganization plan was approved in September.
Grab mulling US IPO
Reuters reports on rumors of Southeast Asia ridesharing and food delivery company Grab considering listing in the US.
[Reuters]
Airlines that went out of business in 2020
In addition to the retail industry, the airline industry was devastated by the pandemic. Here’s a roundup of airlines that didn’t make it to 2021.
[Business Insider]
Since last week, PrivCo has added:
863 Companies | 308 Funding Activities | 208 M&A Deals

Funding & Deal Highlights:

 

ThoughtWorks raises $720MM 
Government Technology Services • Equity • Chicago, IL 

MX Technologies raises $300MM led by TPG Capital
Fintech Software & Internet Services • Round C • Lehi, UT

Capchase raises $60MM from i80 Group 
Investment Management & Financial Advisory • Equity • Cambridge, MA

Loop Insurance raises $3.25MM 
Insurance Services • Seed • Washington, DC

Slim.AI raises $6.6MM 
AI Software & Internet Services • Seed • Boxborough, MA

Air Protein raises $32MM
Food & Beverage Producers • Round A • Pleasonton, CA

Neat Capital raises $22.5MM led by Left Lane Capital
Consumer Finance • Round B • Boulder, CO

Brace.ai raises $15.7MM led by Canvas Ventures
Fintech Software & Internet Services • Round B • Santa Monica, CA

Cisco acquires Acacia Communications for $4.5BN
Software & Internet Services • Acquisition • Maynard, MA 

fuboTV acquires Vigtory
Esports Entertainment • Acquisition • Chicago, IL

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