The "retail apocalypse" rages on in the United States, as department store The Bon-Ton Stores, Inc. filed for bankruptcy in February 2018.
Cumulus Media's FRISK® score of "1" highlighted an elevated probability of bankruptcy well before it filed for Chapter 11. Here were some of the warning signs.
North American-based Paperweight Development Corp., a manufacturer of coated paper products, showed net losses in each of it's last five quarters and also a sharp decline in working capital on the eve of it's bankruptcy in October 2017.
An iconic specialty retailer of toys and baby products, Toys "R" Us, Inc. filed for bankruptcy on Sept. 19, 2017.
TerraVia, a food and kindred products company, filed for bankruptcy in August 2017. CreditRiskMonitor's FRISK® Score consistently indicated that the company was the one of the riskiest within a declining industry.
Multi-billion dollar utility GenOn Energy Inc. filed for Chapter 11 bankruptcy restructuring on June 14, 2017. This outcome primarily resulted from GenOn's excessive debt load and persistent weakness in natural gas prices.
Gymboree filed for Chapter 11 bankruptcy on June 11th, shortly after defaulting on its debt. This struggling retailer is another example of the ongoing credit risks still percolating across the retail industry.
Adeptus Health recently filed for bankruptcy and creditors may have missed the early warning signs. Adeptus Health's FRISK® score, however, caught the trouble as it signaled increasing financial risk over the last twelve months.