[2023-10-10] 15 Retailers On The Brink Of Bankruptcy Right Now

15 Retailers On The Brink Of Bankruptcy Right Now

https://www.youtube.com/watch?v=nBWBDj4ViSs

Tuesday, October 10, 2023

Retail bankruptcies are up by 61%, new data shows. In addition, U.S. store closures have shot up 77% over the past year, and a fresh report released by Retail Dive in partnership with credit reporting agency CreditRiskMonitor identifies several retailers that are most at risk of facing bankruptcy in the final months of 2023, or have just filed for Chapter 11 protection, and are about to close doors for good.
For example, Instant Brands the maker of the viral Instant Pot owner of brands like Corelle and Pyrex has just filed for bankruptcy as parent company Cornell Capital pointed to profitability concerns. During the pandemic, stay-at-home mandates made many families turn to their kitchens for entertainment and comfort, and the Instant Pot, a modern take on a pressure cooker, rapidly became a sensation. But just because something becomes a hit that doesn't mean the underlying company will have long-term success. That's particularly true for brands that sell one-time-purchase items. Even though, at the time seemingly everyone wanted to buy one after the surge in demand was done, Instant Brands lost its core revenue source. During the last holiday season, the kitchen gadget retailer's products helped to drive sales higher for big box stores like Target and Walmart. The problem was that once you owned their products, you weren't likely to need another for at least a few years. In essence, it was an unsustainable business model, which ultimately led the brand to go bankrupt.

Similarly, discount retailer 99 Cent Only Stores saw wider losses in its latest quarter as sales and margins continued to slide. The company reported sales of about $480 million for the quarter, a 3.8% drop year over year. The business also reported a loss of $27 million, while its gross margins fell by 5%. The disappointing results led Moody's to drop the corporate credit rating of the regional discount, indicating a deepening default risk and higher potential for bankruptcy. "The downgrade reflects the company's much weaker than expected operating performance which has constrained liquidity as we expect free cash flow to remain negative,"

Moody's Vice President Mickey Chadha said in a statement. On top of that, the discount is losing ground for competitors such as Dollar General, and Dollar Tree. Moreover, discount grocers such as Aldi are taking up more market share, and many 99 Cents Only Stores look less attractive for both investors and consumers.

The retail apocalypse is still wreaking havoc all across America, and even established brands are in danger of going under due to rapidly shifting economic fundamentals.

This is the beginning of the end for struggling chains, which means we may have to say goodbye to many more stores before we enter 2024. Americans will be shocked to see dark storefronts and shortages of hundreds of products during the holidays as more and more brands shutter locations and halt operations in many areas of the country. This trend will only intensify over the next couple of months, changing our retail landscape forever. That's what we're about to expose in this video, so stay tuned until the end to find out if your favorite store is about to go out of business in 2023.

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