Destination Maternity Corporation

Destination Maternity Corporation
PDF icon Download (2.18 MB)

Baby bankruptcy (ka)boom: American retailer Destination Maternity Corporation has met Chapter 11. Our suspicions about their heightened financial risk via our proprietary FRISK® score, however, were born more than a year before their filing.

Formerly Mothers Work, Inc., the company operates a chain of maternity apparel specialty stores accross the U.S., Canada and Puerto Rico. We have seen Destination Maternity's FRISK® score drop gradually all the way down to a "1" earlier this summer, indicating a bankruptcy risk potential that was 10-to-50 times greater than the average public company:

Destination Maternity Corporation FRISK® score
For our subscribers doing business with Destination Maternity Corporation, the company's daily FRISK® scores likely seemed as pleasant as the contents of a soiled diaper.

Within this unique Bankruptcy Case Study, we'll provide a blow-by-blow breakdown of where things went wrong for Destination Maternity, and how our subscribers were given more than enough lead time to reduce/eliminate exposure to the company as their financial infrastructure crumbled.

Download the free report to learn more.

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 CreditRiskMonitor’s 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. CreditRiskMonitor's 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.