Retail Emerges as Most Distressed Sector in Europe, Report Says

Retail is now the most distressed sector in Europe, overtaking industrials and real estate companies, according to Weil, Gotshal & Manges’ latest measure of corporate distress in the region.

Retail and consumer goods companies are suffering from weak discretionary spending, margin compression and tightening credit conditions, the report said, pushing distress to the highest level since the global financial crisis in 2009. The deterioration has been rapid, with retail jumping two spots among sectors in Weil’s European Distress Index since the firm last published the report in April.