15 retailers on bankruptcy watch for 2018

|
Bon-Ton storefront
Image Credit: Dreamstime
Team Clark is adamant that we will never write content influenced by or paid for by an advertiser. To support our work, we do make money from some links to companies and deals on our site. Learn more about our guarantee here.
Advertisement

Obviously, 2018 has already been a tough year for retail with Toys R Us, Sam’s Club, Macy’s, Sears, Bon-Ton and others all announcing new rounds closures in a new year that’s only one month old.

As the retail industry continues ailing — led by more shoppers looking for deals online and shopping at off-price chains — we’re gearing up for a year chock full of expected bankruptcies.

Here’s a look at who’s likely to turn up in bankruptcy court in 2018, according to S&P Global Market Intelligence.

Read more: Blow-by-blow account of the 2017 retail store closure bloodbath

15 stores on the brink of bankruptcy

STORE PROBABILITY OF DEFAULT IN 2018
Sun Pacific Holding Corp. (formerly EXOlifestyle) 44.38%
Sears Holding Corp. (Sears and Kmart) 25.37%
Razer Inc. 22.86%
Vince Holding Corp. 17.94%
Bon-Ton Stores Inc. 12.74%
Bebe Stores Inc. 10.17%
Destination Maternity Corp.  9.34%
 Destination XL Group Inc. (big and tall men’s apparel)  8.78%
 Stein Mart Inc.  8.24%
 Christopher & Banks Corp.  8.04%
 Sears Hometown and Outlet Stores Inc. (Sears Outlet)  7.23%
 DGSE Cos Inc. (Dallas Gold and Silver Exchange)  6.50%
 Burlington Stores Inc.  5.96%
 Tailored Brands Inc. (Men’s Wearhouse, Joseph A. Bank)  5.69%
 Clarus Corp. (formerly known as Black Diamond)  5.36%

Some names on this list like Sears Holding Corp. and Bebe Stores announced store closures in 2017. Other names — such as Sun Pacific, Razer and Clarus — are manufacturers first and have a small retail footprint that’s almost an afterthought.

Both no matter which camp they fall into, all these retailers face the same core problems.

Those troubles include declining store traffic, liquidity issues, management challenges, weakened competitive positions, ailing credit ratings, exposure to unfavorable borrowing terms, highly promotional pricing that cuts into margins and supply chain interruptions.

That final factor is particularly distressing for those stores that are fast-fashion retailers. Such retailers live and die by being able to get the hottest trends into stores as quickly as possible.

Toy R Us is ready to pull the plug on 182 stores

Advertisement
Theo Thimou About the author:
Theo has co-written several books with Clark Howard, including the #1 New York Times bestseller "Living Large in Lean Times."
View More Articles
  • Show Comments Hide Comments