The number of US businesses staring down the barrel of failure continues to climb. Now, Soleply, a well-loved show outlet, has filed for Chapter 11 bankruptcy amid mounting debt.
Videos by Wide Open Country
The shoe outlet is known for its top-of-the-range selection of sneakers. Any sneakerhead out there will be familiar with the retailer, which has stores in Delaware, Connecticut, Maryland, Rhode Island, New Jersey, and Pennsylvania.
Fans of their footwear and other streetwear items travel far to see their selections. They have often stocked limited edition, and hard-to-find shoes, including Kanye West Yeezys. Despite being a high-end shoe outlet, Soleply has still managed to rack up $10 million in debt, forcing it to file for Chapter 11 bankruptcy.
In this case, filing for Chapter 11 bankruptcy will allow Soleply to remain open for now. Accordingly, they will be forced to make some serious changes to attempt to pull back their losses. This may include moving to an online-only model or closing many underperforming stores.
Soleply One Of Many In The 'Rash of Store Closures' Across US Retail Bankruptcy
Soleply is just one of many bankruptcy filings across the US retail sector. However, Saunders of Global Data said "While it is true that we're seeing a rash of store closures, this is mostly because weaker players are dropping out of the market - because they have failed to convince consumers to shop with them."
But, at this rate, all we will be left with is retail giants, and nothing else, limiting the free market and variety. A monopoly in any market is dangerous, as a lack of competition allows big companies to charge what they please.
The bankruptcy of a store like Soleply is a sign of the times. It is becoming much harder for small companies like this to survive as they are crushed by much bigger businesses. To keep up with the low prices of somewhere like Amazon or Walmart is impossible.
This simply results in fewer companies that can be considered 'specialists,' like Soleply. Consequently, shopping becomes generic, and finding that special something becomes impossible. Bankruptcy has hit many smaller companies across the US, as online shopping through massive companies becomes the go-to way to purchase.
