The Credit Edge by Bloomberg Intelligence
Trade War Is Driving Retailers Nuts, Says Alix’s Etlin
Apr 17, 2025
Holly Etlin, Managing Director at AlixPartners with over 30 years of restructuring experience, shares insights on the retail crisis exacerbated by tariff chaos. Retailers are struggling with order cancellations and pricing amidst rising bankruptcy costs. Etlin discusses how asset-based loans are becoming critical lifelines and highlights the turnaround strategies of Tailored Brands. The conversation delves into the pressures of demand forecasting and the complexities of negotiations in a volatile market, emphasizing the need for resilience and adaptability.
43:10
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Quick takeaways
- Retailers are confronting a crisis reminiscent of COVID-19 due to tariff uncertainties, leading to order cancellations and disrupted supply chains.
- The rising costs of bankruptcy and tightening asset-based lending pressures retailers to adapt their strategies amid ongoing market volatility and reduced consumer demand.
Deep dives
Impact of Trade Wars on Retailers
Trade wars have created significant challenges for retailers, reminiscent of the disruptions experienced during the COVID-19 crisis. Retailers are struggling to make timely decisions regarding inventory orders, especially for the crucial holiday season. With uncertainties around consumer demand and tariffs, many are forced to reassess their inventory strategies, leading to order cancellations and reduced purchases. This unpredictable environment has heightened the urgency for retailers to adapt and develop better decision-making processes to manage supply chain disruptions.
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