Predicting the Next Chapter 11 Wave


A great chart over at the Economist breaks down moves in consumer spending by industry, perhaps giving us some insight over where the next chapter 11 cases will come from, at least in the broadly defined retail sector.

For example, the big decline in restaurant meals is totally consistent with the recent wave of mid-level dining chains in chapter 11 (think Friendlys, Claim Jumper, Chevys, etc.). But before you go predicting a bunch of tobacco companies in chapter 11, be sure to think about international sales ...