Last week, Revlon filed for Chapter 11 bankruptcy protection. Now the questions are: Which retailer will be next, and how soon? After a nearly two-year reprieve, the retail industry could start seeing an increase in bankruptcies later this year, experts say.

Revlon is the first household consumer-facing name to file for bankruptcy in months. "Retail is in flux," says Perry Mandarino, co-head of investment banking and head of corporate restructuring. "There could be an increase in distressed retailers beginning later this year," he says.

The industry had seen a dramatic pullback in restructurings in 2021 and early 2022. The pause followed a flood of distress in 2020, near the onset of the pandemic. Including Revlon's filing, there have been just four retail bankruptcies so far this year.

"We have potentially a perfect storm brewing," says Sally Henry, a professor at Texas Tech Law School. The number of companies in danger of default is the lowest in at least 12 years, according to Fitch Ratings. The list includes mattress maker Serta Simmons, skin-care company Rodan &, men's suit chain Men's Wearhouse and sportswear company Outerstuff.
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