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Report: Retail defaults could surpass those in 2017

Three months into 2018, there are already three defaults in the retail sector in the United States — and more are expected.

Burdened with high debt loads, the retail industry could see just as many defaults this year, if not more, according to MarketWatch, which cited a a study from S&P Global Ratings. There were 11 defaults recorded in 2017.

Approximately 60 days into the new year, three defaults have already been recorded for 2018, the report said. One of the latest is Tops Supermarket Holding LLC, which filed for bankruptcy protection on Feb. 21.

Retailers continue to be challenged by different factors. Some companies are carrying debt stemming from a leveraged-buyout boom throughout the last decade, while others have failed to build out their e-commerce capabilities fast enough to compete with online giant, Amazon, according to the study.

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