Coronavirus Quarantines Could Spell Doom for Already Distressed Retailers

Stores were already challenged by changes in consumer behavior

Distressed retailers, already struggling to attract shoppers and service debt, may find it difficult to remain solvent due to the spread of the coronavirus and measures taken by governments and companies to contain it.

The response to the contagion, ranging from mass store closings and event cancellations to shifting many employees to work from home—all in tandem with fears of a recession—may prove insurmountable for a number of companies.

As Sarah Wyeth, lead retail analyst at rating agency S&P, put it: “Not that many retailers have the capacity to absorb a hit like this.”

That’s especially the case for weaker

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