AlixPartners, a turnaround firm, said at the beginning of the year that 10% to 26% of retailers were in financial distress and were in danger of filing for Chapter 11. It is worth considering how the researchers came up with that number, given that there are tens of thousands of retailers and hundreds of thousands of stores in America. Why wasn’t the number 9% or 27%? The answer is that the forecast is virtually useless, something like counting the number of poisonous snakes in an “Indian Jones” movie. Read More
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