Macy's department stores filed for bankruptcy in 1992 to protect their many stores. The filing was due to the downward trends in the economy throughout that time, and they had too many stores and not enough sales to keep afloat. Unfortunately, Macy's believed that their only alternative was to file for bankruptcy protection.
The purpose of this was to protect and keep open their 251 stores and keep their creditors at bay until they could reorganize and become more solvent. Getting their heads above water will be difficult because no bank will extend credit to the corporation so that they can stock their shelves. Solvency is problematic for many retailers during this time frame, and many department store chains have been compelled to shut their doors due to deficiency of revenue.
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