As has been widely reported, 50 retailers filed for bankruptcy this year, costing the industry thousands of storefronts and hundreds of thousands of jobs, and making 2017 a legendarily bad year for retail. And now a recent report from S&P Global Market Intelligence posits that 2018 could start with even more filings.
The report, which was published by Business Insider, found that 15 more retailers are in imminent danger of defaulting in 2018 and ranks the included retailers by “probability of default.” Among those on the list are Sears, Vince, and Burlington Stores, who occupy the second, fourth, and thirteenth spots, respectively.
For the sake of specificity, S&P has Sears’ probability of default at 25 percent this year, but that figure jumps to 45 percent in 2019, while Vince has an 18 percent chance of defaulting this year and a 36 percent chance next year.
Sears’ status is probably the most troubling, considering their footprint, the sheer volume of jobs they provide, and their shit-colored CCC credit rating (though Vince’s credit rating is just as bad).
To be fair, it’s not like the continued carnage is shocking — the same leverage-related problems that plagued retailers this year aren’t going to disappear in 2018, regardless of corporate tax rates and Corker Kickbacks — but the predictions still don’t inspire confidence, regardless of dubious economic growth predictions.
The full list is below.
- Sun Pacific Holding Corp.
- Sears Holdings (parent company of Sears and Kmart)
- Razer Inc.
- Vince Holding Corp.
- The Bon-Ton Stores
- Bebe Stores Inc.
- Destination Maternity Corp. (parent company of A Pea in the Pod, Motherhood Maternity, and Destination Maternity)
- Destination XL Group Inc.
- Stein Mart Inc.
- Christopher & Banks Corp.
- Sears Hometown and Outlet Stores Inc.
- DGSE Cos Inc. (parent company of Dallas Gold & Silver and Charleston Gold & Diamond).
- Burlington Stores Inc.
- Tailored Brands Inc. (parent company of Men’s Wearhouse and Jos. A. Bank)
- Clarus Corp. (parent company of Black Diamond brand clothing)
You can read more about it at Business Insider.