A massive and beloved retailer now faces possible bankruptcy as it becomes more challenging to raise money and cover industry costs.
Wayfair, “with its once-promising pandemic-era business surge, now finds itself in treacherous waters,” says Rapid Ratings Executive Chairman James Gellert.
“Higher interest rates and a risk-on market environment are causing a capital retraction.
Essentially, it’s harder for Wayfair to raise money to cover its losses.
“This scenario has exposed underlying issues that many companies, like Wayfair, have been grappling with for some time.
With a concerning FHR rating of just 19 out of 100, Wayfair’s vulnerabilities are coming into sharp focus,” he added.
Wayfair Chief Executive Niraj Shah said that since last year the company had been working on a plan to strengthen its business.
“For the past few quarters, you’ve seen us execute against that plan — to lower our costs, focus on the basics, and earn more customer and supplier loyalty,” he said.
“And you’ve seen the tangible impact of this plan as our performance has continued to improve. I’m pleased to share today that we’ve passed one of our key milestones and we are reporting positive adjusted Ebitda and positive free cash flow.”
Wayfair has cut its losses over the past six months to $401 million from $697 million in the year-earlier six-month period.
The company currently has roughly $3.4 billion in assets and $6 billion in liabilities.
“Historically, over 90% of companies that have defaulted were rated 40 and below on our scale.
So there is a high correlation. The distinction between bankruptcy and default is that there are defaults that don’t end in bankruptcy but have caused economic loss,” says Gellert.
Also Read: A US Company Now Declares An Unexpected Bankruptcy
Other Economy News Today
A new wave of massive layoffs now hits Georgia according to the latest data from the Department of Labor.
California remains the #1 state with the most layoffs in the country.
In second place is Colorado, with approximately 26,816 layoffs and 81 WARN notices, followed by Illinois, Washington, New York, Texas, New Jersey, Florida, Michigan, and Massachusetts.
“September saw several more businesses announce layoffs in Georgia, adding to the growing of job cuts announced in 2023.
Under the Worker Adjustment and Retraining Notification Act, an employer with more than 100 full-time workers must provide a 60-day notice before laying off 50 or more people at a single site,” reports Ash Jurberg.
According to WARN data, Georgia has had 7,257 employee layoffs this year with 46 WARN notices to-date.
The state is placed at #10 with the most layoffs in the country.
So far, in 2023, forty-six companies have announced they will be cutting jobs in Georgia.
Below is a list of upcoming layoffs in Georgia expected to take place by year’s end:
- Saddle Creek Logistics Services, 225 jobs cut in Lithia Springs.
- Hood Industries, 105 jobs cut in Metcalfe.
- Thriveworks Administrative Service, 78 jobs cut.
- Tacomac, 25 jobs in Decatur.
- Crown Castle, 81 jobs cut in Alpharetta
- A.L.P. Lighting Components. Lithia Springs. 55 jobs cut.
- Matheson Flight Extenders. Atlanta 335 jobs cut
- Service Management Systems. Savannah. 155 jobs cut
- BPA Facility Services. Brunswick 72 jobs cut
- Crown Castle USA Inc. Alpharetta 81 jobs cut.
- Omni Corporation. Brunswick 139 jobs cut.
- Novembal USA. Across Georgia, 50 jobs were cut.
- East Lake Golf Club. Atlanta 48 jobs cut.
- Anthony, Inc. Conyers 136 jobs cut.
- Pinova, Inc. Brunswick 125 jobs cut.
- GXO Logistics Supply Chain. Fairburn 77 jobs cut.
- WestRock Services. College Park 89 jobs cut.
- Progressus Therapy. Savannah, Evans, Columbus 241 jobs cut.
- Federal Express Corporation. Macon 62 jobs cut.
- USASF SERVICING. Lawrenceville, Duluth 89 jobs cut.
- Hexaware Technolgoies, Inc. Atlanta 84 jobs cut.
- U.S. AUTO SALES, INC. Lawrenceville, Duluth 142 jobs cut.
- ART LAMINATING & FINISHING LLC Atlanta 35 jobs cut.
- Makita USA, Inc. Flowery Branch 22 jobs cut.
- Omni Corporation Glynco 18 jobs cut.
- Bed Bath & Beyond Inc Pendergrass 1000 jobs cut.
- David’s Bridal, LLC Buford, Kennesaw, Morrow, Macon, Augusta, Savannah 193 jobs cut.
- SSB Manufacturing Company Waycross 180 jobs cut.
- NFI Interactive Logistics, LLC McDonough 172 jobs cut.
- Batter Up Foods LLC Atlanta 110 jobs cut.
- Aspiration Partners Inc. Remote 146 jobs cut.
- Packers Sanitation Services. Murrayville 135 jobs cut.
- Solo Cup Operating Corporation Thomaston 84 jobs cut.
- Oxley Park Health and Rehabilitation Lyons 94 jobs cut.
- Walmart. Atlanta 510 jobs cut.
- Twilio Inc. Atlanta 54 jobs cut.
- Convoy, Inc. Atlanta 119 jobs cut.
- Valassis Direct Mail, Inc. Austell 69 jobs cut.
- Bechtel Power Corporation Waynesboro 536 jobs cut.
- JELD-WEN, Inc. Atlanta 82 jobs cut.
- OA Logistics Pentworth 189 jobs cut.
- Railcrew Xpress (RCX) Athens 11 jobs cut.
- Dexter Axle Company Monticello 67 jobs cut.
Also Read: A US Bank is Now Denying Customers Access to Money
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