An iconic specialty retailer of toys and baby products, Toys "R" Us, Inc. filed for bankruptcy on Sept. 19, 2017. The New Jersey-based giant has heavily cut corporate jobs in 2017 as shopping rapidly shifts from physical stores to online ones. Their adjusted EBITDA was $44 million for Q1 2017, a decline of $35 million compared to the prior year period. Later in the summer, Toys "R" Us sought help to restructure its roughly $400 million in debt due in 2018.
CreditRiskMonitor’s FRISK® score has been warning of financial stress at Toys "R" Us (a "1" for several years prior to 2017, the lowest possible score) compared to the average industry score (between "6" and "7"). Our bankruptcy case study shows how CreditRiskMonitor could have alerted you to the signs of failure before it was too late.
About Bankruptcy Case Studies
CreditRiskMonitor® Bankruptcy Case Studies provide post-filing analyses of public company bankruptcies. Our case studies educate subscribers about methods they can apply to assess bankruptcy risk using our proprietary FRISK® score, robust financial database, and timely news alerts.
In nearly every case, a low FRISK® score gave our subscribers early warning of financial distress within a one-year time horizon. Our proprietary FRISK® score predicts bankruptcy risk at public companies with 96% accuracy. The score is formulated by a number of indicators including stock market capitalization and volatility, financial ratios, bond agency ratings from Moody’s, Fitch and DBRS, and crowdsourced behavioral data from a subscriber group that includes 35% of the Fortune 1000 and thousands more worldwide.
Whether you are new to credit analysis or have decades of experience under your belt, CreditRiskMonitor® Bankruptcy Case Studies offer unique insights into the business and financial decline that precedes bankruptcy.