Categories Analysis, LATEST, Retail

Eight retailers that could go bankrupt this year

Last week, America’s largest mattress company – Mattress Firm – became the latest victim of the retail apocalypse, filing for Chapter 11 at Denver Bankruptcy Court. Mattress Firm was, in fact, the largest retailer to go bust this year, pledging to close as much as 700 stores across the country.

Though the rate of retail bankruptcies has been slower in 2018 than last year, mall vacancy rates climbing to a seven-year-high of 9.1% during the third quarter gives little hope of a recovery. More than 50 stores had filed for bankruptcy last year – including Toys R Us and Gymboree – which was the highest since 2011.

The S&P Global Markets had earlier this year predicted that retail bankruptcies in 2018 could touch last year’s levels as many companies face a liquidity crisis. With only over two months to spare this year, let’s take a look at a few companies that could be facing a potential doom.

99 Cents Only Stores

Faced by cut-throat competition from Walmart (WMT), Dollar Tree (DLTR) and Dollar General (DG), 99 Cents Only has been struggling to make profits. Though the company, which appointed a new CEO in February, has been posting slight increases in comp sales, it has come at the cost of unsustainable discounts.

Companies that could go bankrupt this year sears
Image courtesy: Wikimedia Commons

Sears Holdings

Bankruptcy of this retail giant has been long overdue. It has been saved every time over the past decade with the help of CEO Eddie Lampert’s hedge fund loans. If the company fails to repay the debt obligations, it is going to be in big trouble. Sears Holdings (SHLD) stock has lost 92% of its value in the past one year.

J Crew

The New York-based specialty retailer is sitting on the top of a debt mount, thanks to a buyout in 2011. The once go-to place for pullovers tried to reinvent itself last month with rebranding, which could be seen as a last try to stop the company from failure. With years of dwindling sales and the brand losing its sheen, chances of a revival are abysmal.

GNC

Shares of GNC Holdings (GNC) have tumbled 50% during the past 52 weeks as investors have been steadily losing faith in the health and supplements provider.  Last month though, shares jumped a good 27% after a $300 million investment in the company by Harbin Pharmaceutical Group Holding received regulatory approval. Though the investment comes as a minor relief to its massive debt load, whether this will be adequate for a turnaround is yet to be seen. Vitamin Shoppe (VSI) is another company in the same industry that is facing fallout due to declining mall traffic.

America’s largest mattress company files for bankruptcy protection

Neiman Marcus

The department store company has been doing relatively good sales in the past few quarters, but a debt burden of $4.8 billion is pulling the company down. The Dallas, Texas-based firm has been doing everything in its capacity to save itself – from a management rejig to a digital-first sales approach – but nothing has yet served the desired results. A potential acquisition by Hudson’s Bay also fell apart in June, shattering hopes for a turnaround.

Guitar Center

Apparently, millennials are not guitar freaks like baby boomers. The company, founded in 1959 has seen a sharp drop in sales over the past few years. With sales of electric guitars plummeting as much as 36% between 2005 and 2016, there is little to save the company from sinking.

Why Target is a better investment than Walmart this holiday season

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Comments

  1. Pingback: Lincoln Georgis
  2. Pingback: Chirurgie Tunisie
  3. Pingback: Community service
  4. Pingback: Politics
  5. Pingback: Required Courses
  6. Pingback: البحث
  7. Pingback: Ovens
  8. Pingback: System Analysts
  9. Pingback: fue phone number
  10. Pingback: MBA
  11. Pingback: Alumni network
  12. Pingback: machine hack squat
  13. Pingback: quietum plus
  14. Pingback: Fiverr Earn
  15. Pingback: Fiverr Earn
  16. Pingback: Fiverr Earn
  17. Pingback: Fiverr Earn
  18. Pingback: Fiverr Earn
  19. Pingback: Fiverr Earn
  20. Pingback: fiverrearn.com
  21. Pingback: dallas frenchie
  22. Pingback: fiverrearn.com
  23. Pingback: fiverrearn.com
  24. Pingback: fiverrearn.com
  25. Pingback: fiverrearn.com
  26. Pingback: designer dogs
  27. Pingback: jute rugs
  28. Pingback: french bulldog
  29. Pingback: jewelry
  30. Pingback: techno
  31. Pingback: future university
  32. Pingback: seo
  33. Pingback: wix website
  34. Pingback: Fiverr.Com
  35. Pingback: Fiverr.Com
  36. Pingback: future university
  37. Pingback: Lean
  38. Pingback: Piano relocation
  39. Pingback: FUE
  40. Pingback: Packing expertise
  41. Pingback: Classic Books 500
  42. Pingback: FiverrEarn
  43. Pingback: FiverrEarn
  44. Pingback: FiverrEarn
  45. Pingback: FiverrEarn
  46. Pingback: Coach
  47. Pingback: partners
  48. Pingback: FUE
  49. Pingback: french bulldogs
  50. Pingback: FiverrEarn
  51. Pingback: live sex cams
  52. Pingback: live sex cams
  53. Pingback: FiverrEarn
  54. Pingback: FiverrEarn
  55. Pingback: FiverrEarn
  56. Pingback: FiverrEarn
  57. Pingback: FiverrEarn
  58. Pingback: FiverrEarn
  59. Pingback: FiverrEarn
  60. Pingback: FiverrEarn
  61. Pingback: pearl
  62. Pingback: Slot Online
  63. Pingback: Situs Slot Online
  64. Pingback: FiverrEarn
  65. Pingback: FiverrEarn
  66. Pingback: FiverrEarn
  67. Pingback: FiverrEarn
  68. Pingback: cheap sex cams
  69. Pingback: fullersears.com
  70. Pingback: live sex cams
  71. Pingback: live sex cams
  72. Pingback: frt trigger
  73. Pingback: Logo Designing
  74. Pingback: 늑대닷컴
  75. Pingback: Slot Buah
  76. Pingback: One Peace AMV
  77. Pingback: One Peace AMV
  78. Pingback: allgame
  79. Pingback: 918kiss
  80. Pingback: หวย24
  81. Pingback: Raahe Guide
  82. Pingback: catskills hotel
  83. Pingback: 6mm arc ammo
  84. Pingback: ozempic
  85. Pingback: itsMasum.Com
  86. Pingback: itsMasum.Com
  87. Pingback: Skywhip tanks
  88. Pingback: nangs Sydney

Comments are closed.

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top