Teen retailers that do not keep up with fashion trends are very likely to have a hard time generating the revenue necessary to stay in business. Many teen clothiers are noticing a steady decline in sales due to new competitors in the market. Many shops in New Jersey, and across the United States, are feeling the impact and are being forced to take action to avoid shutting their doors. These businesses may make the important decision to file for Chapter 11 bankruptcy in an effort to save their companies.
Deb Shops, which focuses primarily on young women's and teen fashion, has announced that it will be filing for Chapter 11 bankruptcy. This is the second time in four years that the clothier has reached out to file for bankruptcy. The first time was in 2011 when the company was sold. A large goal of this bankruptcy is to attempt to find a buyer. If no buyers step forward, the company may be forced to liquidate its assets.