These Retailers Can’t Attract Customers and Might Soon Close Forever
We all know about the retailers in real trouble. Sears is on its deathbed. Macy’s isn’t looking too good. And despite the struggles of those two stores, their hated CEOs are still making plenty of money. Even iconic brands like Campbell’s Soup and Harley-Davidson aren’t immune face uncertain futures.
Some of it can be chalked up to the reach and convenience of Amazon. Specializing in niche products or not following the lead of loved stores is also hurting retailers. It’s a hard time for many brick and mortar retailers, but some have it worse than others. Here are 14 chains in danger of disappearing forever.
First things first
You probably know how bad things are for most retailers. Empty storefronts are a sign of the struggles they face. Some well-known brands have been failing horribly as customers turn their backs, but they are far from alone. As we are about to see all brands — big and small, anonymous and well-known — are under pressure.
Next: $1 billion in debt troubles this group of grocers.
The outlook for this grocer isn’t positive. According to a report by USA Today, Moody’s rates BI-LO’s credit standing as Caa-1, or very high risk. It’s not looking good for the company that also owns Winn-Dixie. It apparently has $1 billion in debt it has to deal with before it can get back on track, which is why it’s definitely in the danger zone.
Next: Amazon is partly to blame for this next one.
2. Fresh Market
Another struggling grocer, Fresh Market carries the same poor credit rating as BI-LO. It keeps closing stores in an effort to stay profitable, but it doesn’t seem to be helping. This one can partially be blamed on the Amazon effect. Fresh Market specializes in organic and local produce. After Amazon acquired Whole Foods and slashed prices, it made life tough on Fresh Market stores. Unfortunately for Fresh Market fans, Bloomberg reports it won’t be getting any better.
Next: Our next store doesn’t have a healthy outlook.
Some of the supplements GNC sells can help you bulk up. Unfortunately, those protein shakes aren’t inflating the company’s bottom line. Its stock value has seen a steady decline, and revenue, sales, and earnings per share were all down considerably early in 2017. Scares about tainted supplements don’t help either. With no obvious way out of the rut, GNC is one retailer in danger of closing forever.
Next: Customers should start playing a sad song for this retailer.
4. Guitar Center
Considering Guitar Center caters to a select base of customers, it shouldn’t be a shock to learn it’s in trouble. With more than $1 billion in debt and no clear way into the black, Moody’s gives it one of its worst credit ratings, which is another downgrade in its standing.
Next: Specialized footwear isn’t what it used to be.
5. Shoes For Crews
SHO Holding I Corporation, the private corporation that owns several apparel brands, including Shoes For Crews, might have to go public to save its future. With $280 million in debt and weaker than expected performance, the long-term outlook is grim. Moody’s downgraded its credit rating to be one of the lowest it gives.
Next: Maybe food isn’t as popular as it used to be.
6. Tops Markets
The company that owns Tops Markets in New York, Pennsylvania, and Vermont might not be long for this world. The private company protects its financial information, but the Tops Markets website shows it has debts due in 2021 and 2022. Despite increased sales and profit, Tops showed decreased profit margins and operating income early in 2017. In the world of grocery retailers, that’s not a good sign.
Next: Where have we heard this one before?
7. Fairway Market
If you haven’t picked up on the trend yet, small, regional grocery chains are in trouble. If a grocery store concentrated in the heavily populated New York City metro area can’t make it, then you know it’s bad. Before naming a new CEO early in 2017, the company already racked up $267 million in debt. Moody’s doesn’t pull any punches on its reasoning for its negative outlook about Fairway, writing, “Fairway’s small scale, geographic concentration, very weak credit metrics” contribute to the Caa2 rating.
Next: Oversized debt load hurts this group of clothing brands.
8. FULLBEAUTY Brands
The several brands owned by FULLBEAUTY that cater to larger men and women, such as Jessica London, Woman Within, and King Size, could disappear in the very near future. The company lost $60 million in revenue for the year ending in July of 2017. With $345 million in debt due by 2023, the outlook isn’t bright.
Next: The cash on hand won’t carry this clothier very far.
On the surface, the last financial report for fashion retailer Vince looked good. Sales increased overall and direct to consumer sales were way up. But income was down by nearly $1 million and it had just $5.7 million in cash on hand against $68.1 million in debt. Most of that debt, more than $45 million, is due in 2019, which is why Moody’s says Vince’s future is looking grim.
Next: It’s fitting this company specializes in rainy day gear.
10. Totes Isotoner
You probably haven’t heard of Indra Holdings, but you probably know its brands, such as Totes and Isotoner. They specialize in boots, gloves, and other rainy day gear. If you’re a fan of those brands, you might want to get your shopping in now. A recent $20 million cash infusion is hardly a drop in the bucket compared to the $232 million in outstanding debt. Now a huge credit risk, it is one of the most troubled retailers out there.
Next: This company is stable for now, but the future is uncertain.
11. Bluestem Brands
Bluestem Brands is the holding company that counts women’s apparel brands, such as Appleseed’s, in its portfolio. When Moody’s last looked at the financials Bluestem’s credit was listed as stable, but that could soon change. The first quarter of 2017 was not a good one and, as Moody’s notes, Bluestem’s unique position among retailers in its market segment make for an unstable future.
Next: This company has to lace up the boots and get to work.
12. Cole Haan
Footwear company Cole Haan is stable, according to Moody’s, but it is still on dangerous footing (see what we did there?). A strong 2017, with nearly $600 million in revenue, wasn’t enough to upgrade the company’s credit rating with Moody’s. The strong earnings are a good first step, but the company needs sustained success to find its footing (OK, we’ll stop now).
Next: Bad times for another footwear company.
13. TOMS Shoes
For every pair of shoes TOMS sells, it gives shoes, glasses, and water to those in need. It’s all part of the retailer’s One for One philanthropy. It’s a noble idea, but the bottom line is suffering. The company received $18 million in cash late in 2017, but with close to $300 million in debt due in 2020, according to Moody’s, it’s going to take some monstrous retail success to get back on track.
Next: The company might be able to ride the wave to higher ground.
The company once known as Quicksilver went into bankruptcy in 2015. When it came out of bankruptcy shortly after that, the retailer was rebranded as Boardriders and it now owns DC Shoes and Roxy. Of the companies on this list, it is the most stable, according to Moody’s credit ratings, but a proposed buyout of Billabong could muddy the waters for the future.
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