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Specialty retailer, The Container Store Group, Inc., filed for bankruptcy on December 22, 2024. The FRISK® Score had signaled the company’s financial distress for 12 consecutive months, providing early warning to subscribers. Yet the company’s Days Beyond Terms Index, a measure of historical trade payment performance, persistently indicated prompt payment behavior. The divergence between these indicators is known as the “Cloaking Effect”.

When WW International (Weight Watchers) filed for bankruptcy, credit professionals relying solely on financial-based models like the Z''-Score did not detect the company’s financial distress. CreditRiskMonitor’s 96%-accurate FRISK® Score – a real-time, hybrid model – flagged WW International’s financial distress well in advance, offering a crucial early warning. This case underscores the power of combining financial data, stock market performance, aggregate insider sentiment, and agency ratings for precise bankruptcy predictions.