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I’ve told you about how tariffs and changing consumer tastes have hurt department store retailers. Don’t forget that their suppliers also suffer in turbulent times.
Fleetwood Industries, which makes shelves, window displays, and...more shelves for clients including Neiman Marcus, Nordstrom, and J.C. Penney, has filed for Chapter 11 bankruptcy.
How we got here: Fleetwood’s revenue declined around 50% from 2018 to 2019. It can thank multiple breaks in the supply chain...
- Struggling customers (like a few listed above) delayed their orders. When they did make orders, some didn't pay invoices on time.
- Tariffs on Chinese imports bumped up the costs of materials Fleetwood uses for its shelves and checkout counters.
- Acquiring a new manufacturing facility ate up investment cash but hasn’t provided immediate returns.
Looking ahead...the company has vague plans to restructure its operations while in bankruptcy. It hopes that it’ll remain a top supplier for U.S. retailers that are still big on brick and mortar.