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Our favorite retailers are generally those on which we think we can count to always have what we need, that we buy online or that we return these stores. But as we now know too well, the ongoing detail apocalypse even requires the most loved companies shutter places , make reliability a thing of the past. Now several renowned stores Following 12 months , Retail Dive reported, citing new data from Creditriskmonitor.

With the threat of an imminent recession that is looming, consumers could simply spend less. As Elizabeth Han , the main director of the leveraged financial team of the United States of Fitch, told Retail Dive, current purchasing habits are typical of difficult times.

"Many retail businesses are discretionary of consumers, so in the event of economic withdrawal or economic uncertainty, you will see that some of these income drops because it is more a discretionary purchase," she said.

However, she added that retailers are also struggling with problems of inflation, inventory and current supply chain and high interest rates, which all affect the overall stability of companies.

To assess the retailers with the highest risk of bankruptcy, Creditriskmonitor The label with a Frisk score, which varies from 1 (the worst) to 10 (the best). The list of those who have the most problems include pillars like Joann (formerly known as Jo-Ann Fabrics), Rite Aid and three other well-known brands. Read the rest to find out why these companies are struggling.

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Joann is the first on the list, with a frisk score of 1, which means that it has between 9.99 and 50% chance of losing bankruptcy in the next 12 months, Retail Dive reported.

Joann faced ups and downs from the cocovated pandemic, assigned negatively at the start due to the temporary closure of retail stores, but also positively impacting due to increased interest in crafts in quarantine.

According to Retail Dive, Joann asked for a first public offer (IPO) in February 2021, but its sales dropped later that year. He also had a hard time, like many others, as new cocorable variants emerged and that the problems of the supply chain persisted. The craft giant has brought some changes this year, including employee layoffs and other cost reduction measures, but he has always maintained long -term debt for an amount of $ 1.1 billion in July.

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Rite Aid is the next on the list of the most vulnerable, also coming with a Frisk score of 1, reported Retail Dive.

The question of whether Rite Aid will file the record in the near future has been a hot discussion subject - and it has been said that the company could close up to 500 stores accordingly.

The company has $ 3.3 billion in long -term debt in June, which is aggravated by the fact that sales continue to decrease, according to Retail Dive. It is an unhappy turning point in the height of the COVVI-19 pandemic, when Rite AID was a destination for vaccines, masks and medical necessities.

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The retailer at a reduced price Big Lots is also likely to file for bankruptcy, but he reproduces a little better than Rite Aid and Joann, according to Creditriskmonitor data. Big lots has a frisk score of 2, which means that it has between 4 and 9.99% of bankruptcy in the next 12 months. AE0FCC31AE342FD3A1346EBB1F342FCB

Sales have dropped "two -digit during each of the last two quarters," said Retail Dive. Large lots have tried to fight against this with cost reduction measures Like closings , with the CEO Bruce Thorn Noting that current inflation was a major problem for retailer's customers.

However, Big Lots has been in trouble for some time now. As Matthew Debbage , CEO of the Americas and Asia of Creditsafe, told Retail Dive: "their income, their profits before taxes, the profits selected, the total assets and the net value have all decreased in the past two years. But their passive increased for two years. 'T a good combination. "

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The container store also has a Frisk 2 score, which puts its chances of bankruptcy between 4 and 9.99%.

It was another brand of house that did after the initial start of Covid, but in the first quarter of this year, sales fell by 21%. The container store made dismissals in May, with the CEO Satisfy Malhotra Also take a salary reduction to help pay the employees.

To complete the list, Petco, which also has a Frisk score of 2. Keeping in accordance with this model, the company behaved well during the pandemic, because people were at home and had more time to adopt and s' Occupying pets, Retail Dive reported. As an essential retailer, Petco also took advantage of because he remained open while other retailers were forced to close.

However, while sales increased in August, Petco declared losses this quarter, which are again aggravated by its debt.

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