Although the economy grew by nearly 2 percent in 2011, consumer spending is still suppressed. While many people have cut their spending habits many retail operations have felt the effects. Everything from restaurants to retail clothing stores are now finding themselves in Chapter 11 in hopes of restructuring debts and regaining profitability.
Plus Sized Debts
Avenue clothing stores are among the top contenders in the plus sized clothing market, which is estimated to be an $18 million annual industry. Part of United Retail Group, Avenue has over 430 stores nationwide. The company filed for bankruptcy earlier this week as part of a plan to reorganize and remain in operation.
Despite the fact that close to half of all American women fall into the plus size category, plus sized clothing sales account for only 17 percent of retail purchases. After continued losses over the last several quarters, Avenue is hoping to sell off some of its assets and close up to 14 stores to help fight off further financial problems. The company has plans to revamp its image and upgrade its clothing options as ways to recapture the attention of a potentially large market share.