On-Demand Toy Association Webinar Offers Members Advice for Responding to Financially Distressed Retailers

January 24, 2023 | Following the news about two national retailers filing for or nearing bankruptcy, a recent Toy Association webinar walked attendees through the steps for working with financially distressed retailers. Members may access the recording for “Retailer Bankruptcies are Looming: Best Practices for Doing Business with a Financially Troubled Retailer” on the Toy Association website.

Party City filed for Chapter 11 bankruptcy on January 17, while Bed Bath & Beyond earlier this year announced “substantial doubt” about its ability to continue as a company. Jason M. Torf, Tucker Ellis LLP partner and one of the presenters of the webinar, warned manufacturers that retailers of all sizes may be financially at risk this year and that it’s best to be prepared for any outcome.

“Given the possibility of a recession happening sometime this year coupled with the inability of a lot of retailers to negotiate meaningful rent concessions from their landlords, we expect that we’re going to see a fair share of outlets — both large and small — find their way into bankruptcy court or some form of financial distress at some point this year,” Torf said.

During the webinar, the presenters cover in-depth best practices for manufacturers to protect their company, maximize recovery when a retailer appears to be nearing bankruptcy, and mitigate risk when continuing to do business with a bankrupt retailer.

Questions about the many educational opportunities offered by The Toy Association to members may be directed to Anne McConnell, senior director of market research & data strategy.