J.Crew Group, Inc.
Thousands of retail stores have closed their doors during 2017, topping figures recorded back during the Great Recession from 2007-08. The current troubles, however, stem from the shift toward online sales, which is leading to struggles at heavily indebted brick and mortar retailers. J.Crew Group, Inc. with a poor FRISK® score of "1," is a prime example of the trend.
This High Risk Report on J.Crew presents critical factors that are contributing to its high degree of financial distress. For instance, second quarter performance metrics including interest coverage and free cash flow showed significant deterioration year-over-year. Additionally, the business ranked in the bottom quartile of its peer group for debt to assets, reaching an alarming level of 1.45 times. J.Crew should be on your watch list if the retailer is one of your customers.
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About High Risk Reports
CreditRiskMonitor’s High Risk Reports feature companies that are exhibiting a significantly high level of financial distress, as indicated by our proprietary FRISK® score.
The reports highlight the factors that have pushed a company's score lower on the "1" (worst) to "10" (best) FRISK® score, which is 96% accurate in predicting bankruptcy over a 12-month period. The High Risk Reports also includes analysis on financial indicators such as the company’s DBT index, stock performance, financial ratios and how it is performing relative to its industry peers.
The ultimate goal of the High Risk Report series is two-part: provide an early warning for those doing business with an increasingly distressed company and inform of the many signals that should be examined when assessing financial risks.