Part 5/9:
The common denominator for these closures seems to be substantial debt combined with declining consumer interest. Businesses once took advantage of cheap borrowing to expand, but as the Federal Reserve raises interest rates, payment obligations become untenable. This vicious cycle of debt leads to a painful reality check for companies and their employees alike.
Moreover, consumers are now prioritizing essential spending over discretionary purchases, with many akin to the specialized goods offered by companies like The Container Store and Party City deeming them non-essential in tough economic times.