U.S. retailers going under at a record pace

NEW YORK — Retailers in the United States are filing for bankruptcy at a record rate as they try to cope with the rapid acceleration of online shopping.

In a little over three months, 14 chains have announced they willseek court protection, according to an analysis by S&P Global Market Intelligence, almost surpassing all of 2016. Few retail segments have proven immune as discount shoe-sellers, outdoor goods shops and consumer electronics retailers have all found themselves headed for reorganization.

Meanwhile, America’s retailers are closing stores faster than ever as they try to eliminate a glut of space and shift more business to the web. S&P blamed retailer financial struggles on their inability to adapt to rising pressure from ecommerce.

Urban Outfitters chief executive officer Richard Hayne said as much on a conference call with analysts last month. There are just too many stores, especially those that sell clothing, he said.

“This created a bubble, and like housing, that bubble has now burst,” said Hayne. “We are seeing the results: doors shuttering and rents retreating. This trend will continue for the foreseeable future and may even accelerate.”

Jim Elder, S&P Global Market Intelligence’s director of risk services, wrote that first quarter results suggest there’s no quick recovery in sight.

Sears Holdings Corp., Bon-Ton Stores and Perfumania Holdings are among the most vulnerable in the coming year, according to an S&P analysis of public retail companies. Sears acknowledged in a March filing that there is “substantial doubt” about its future.

Fitch named retail chains including Nine West Holdings, Claire’s Stores, and children’s clothing outlet Gymboree Corp. in a study late last year.

Department stores, electronics retail, and apparel shops are at highest risk, according to S&P. The food and home improvement segments are safest.

Apparel retail has been particularly hard hit, with The Limited, Wet Seal, BCBG Max Azria, and Vanity Shop of Grand Forks all seeking court protection in 2017.

The latest was Payless, which filed for bankruptcy April 4 and said it would shutter 400 stores.