There is no doubting the impact that the internet has had on everyday life, and the incredible change that it has brought to our society and the world as a whole. In most cases, the change has been a positive one, and since the availability and accessibility has become ubiquitous, it is a force to be dealt with every day.
One area that has been weakened by the internet is retail, as many people have come to trust transactions on the internet and shopping is fast and easy, and delivery in many cases is very cheap or free. Bankruptcies in the industry are piling up, and in 2017 alone such well-known companies as Payless, Wet Seal, The Limited and hhgregg have filed for protection.
A new Jefferies research report sources an article from S&P Global Market Intelligence that looks at 10 companies that are the most at risk now to be one of the next to choose bankruptcy. While filing bankruptcy in of itself does not mean the company is gone forever, it does mean that shareholders and holders of the debt can be in for a long wait.
Here are the 10 companies cited in the article as being potential candidates to file for bankruptcy.
1. Sears Holdings Corp. (NASDAQ: SHLD) should come as no surprise, as the iconic retailer, which also owns Kmart, has been selling assets and closing store for years. The shares closed most recently at $10.43.
2. DGSE Companies Inc. (NYSE: DGSE) buys and sells jewelry and bullion products with individual consumers, dealers and institutions in the United States. The company markets its products and services through eight retail locations under various banners, including Charleston Gold & Diamond Exchange, Chicago Gold & Diamond Exchange and Dallas Gold & Silver Exchange. The stock closed trading most recently at $1.65 a share.
3. Appliance Recycling Centers of America Inc. (NASDAQ: ARCI) sells and recycles household appliances through a chain of company-owned retail stores under the ApplianceSmart name. Its shares closed most recently at $0.88.
4. Bon-Ton Stores Inc. (NASDAQ: BONT) operates department stores in the United States that offer brand-name fashion apparel and accessories for women, men and children, as well as cosmetics, home furnishings and other goods. As of January 18, 2017, it operated 266 stores, including nine furniture galleries and four clearance centers in 26 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers nameplates. The shares closed at $0.86.
5. Bebe Stores Inc. (NASDAQ: BEBE) designs, develops and produces women’s apparel and accessories under the bebe and BEBE SPORT brand names in the United States, Puerto Rico and Canada. The company provides a range of fashion separates, tops, dresses, active wear, outerwear and accessories for various wardrobe occasions, as well as jewelry, fragrances, shoes, handbags and optics. As of April 22, 2017, it operated 134 bebe retail stores, 34 bebe outlet stores, and bebe.com, an online store. The shares closed at $3.90.
6. Destination XL Group Inc. (NASDAQ: DXLG) operates as a specialty retailer of big and tall men’s apparel in the United States and England. Its stores offer sportswear and dresswear; shoes; accessories, such as belts, ties and socks; fashion-neutral items, including jeans, casual slacks, tee-shirts, polo shirts, dress shirts and suit separates; casual clothing; lifestyle products, comprising chairs, outdoor accessories, travel accessories, bed and bath products, and fitness equipment. The stock closed at $2.45.
7. Perfumania Holdings Inc. (NASDAQ: PERF) operates as a specialty retailer and distributor of fragrances and related beauty products in the United States. The company distributes designer fragrances to mass market retailers, drug and other chain stores, retail wholesale clubs, traditional wholesalers and other distributors. Shares closed at $1.05.
8. Fenix Parts Inc. (NASDAQ: FENX) engages in the auto recycling business in the United States and Canada. It is involved in recycling and reselling original equipment manufacturer (OEM) parts, components and systems. The stock closed at $1.00.
9. Tailored Brands Inc. (NYSE: TLRD) operates as a specialty apparel retailer in the United States, Puerto Rico and Canada. The company operates 1,667 stores under the Men’s Wearhouse, Men’s Wearhouse and Tux, Jos. A. Bank, Joseph Abboud, Moores, K&G,and The Tuxedo Shop @ Macy’s brands, as well as e-commerce sites and 39 retail dry cleaning, laundry and heirlooming facilities. The stock closed at $12.61.
10. Sears Hometown and Outlet Stores Inc. (NASDAQ: SHOS) engages in the retail sale of home appliances, lawn and garden equipment, tools and hardware in the United States. The stock closed at $3.25.
There you have it, 10 companies that could be edging closer to a bankruptcy filing. As is evident, many of the company’s shares trade in the single-digit range, indicating that shareholder interest is very low. While none of them is guaranteed to file, for the time being there are probably better places to put your investment dollars, especially in the retail sector.
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