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Image: Forever 21
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1. Forever 21’s Bankrupt Shell May Stiff Creditors of $200 Million: The U.S. Department of Justice’s bankruptcy watchdog is urging the judge overseeing the shell company’s case to convert it to a Chapter 7 liquidation from a Chapter 11 reorganization, estimating that high-ranking creditors owed some $250 million will likely only get 17% of that money back, or less than $50 million, according to court papers. – Read More on Bloomberg

2. Fewer retailers are seeking US IPOs in 2020. Those that do are raising less amid coronavirus pandemic: A total of seven retail companies have gone public in 2020 during the coronavirus pandemic as of Sept. 4, raising $987.78 million in gross proceeds. In comparison, 10 retailers fetched a combined $3.13 billion in their public debuts during the same period in 2019. – Read More on S&P Global

3. B Corps May Be Fashion’s Next A-list: While B Corps haven’t long carried cachet for brands, interest in the designation is ramping up as sustainability becomes fashion’s “It” item.  “We saw a 60 percent increase in B Corp. certifications from 2018 to 2019, and we’re expecting that to be even larger in 2020.” – Read More on WWD

4. U.S. Retail Spending Grew at Slower Pace in August: U.S. consumers increased retail spending in August for the fourth straight month but at a slower pace than earlier in the summer as the economy tried to recover with the coronavirus pandemic still under way. Clothing purchases rose 2.9 percent, while furniture spending increased 2.1 percent from July. – Read More on the Wall Street Journal

5. Why Retailers are battling over business interruption insurance: When Century 21 filed for bankruptcy last week, the New York City-based department store chain blamed its demise on failing to receive payouts from its business interruption insurance. International chains like Ralph Lauren, as well as popular local clothing brands like Oaklandish, have gone to court, claiming that their insurance providers are not paying out what their businesses are owed under their business interruption policies. – Read More on Modern Retail