A Popular Retailer Is Now At High Risk For Bankruptcy

December 4, 2023

A popular retailer is now at high risk for bankruptcy according to new data compiled from CreditSafe.

“Stein Mart’s DBT was 105 as of October 2023.

This means any company providing services/goods to the retailer would have to wait over three months past payment terms before they would receive their first payment,” CreditSafe shared in its Financial & Bankruptcy Outlook Retail Report.

“Stein Mart’s owner could be headed for bankruptcy,” the report stated, noting that in March, REV “hired restructuring lawyers, signaling bankruptcy could once again be on the horizon.”

REV has built its business on buying once-popular retail brands and reviving them as online-only stores.

The company now owns Pier 1, Stein Mart, RadioShack, DressBarn, Linens ‘n Things, Modell’s, and a handful of lesser-known names, reports TheStreet.

DBT refers to the number of days it typically takes to pay invoices beyond payment terms.

“Stein Mart has had considerable trouble paying its bills on time. In fact, all its outstanding bills for the last six months (May through October) were delinquent (91+ days). And June was the worst month, with the value of its delinquent bills increasing by 191.66%.”

The risk-measuring firm’s second metric, “risk score,” uses a scale of 1 to 100 to predict the likelihood that a company’s payment performance will become seriously delinquent (91+ days beyond terms) or that the company will go bankrupt within the next 12 months.

“Based on a Wall Street Journal Report, in March 2023, Stein Mart’s parent company Retail Ecommerce Ventures was exploring options to get out of the financial trouble they’re in, including a potential Chapter 11 bankruptcy,” said Ragini Bhalla, head of brand and spokesperson for Creditsafe.

Also Read: A US Company Now Declares An Unexpected Bankruptcy

Other Economy News Today

A massive pharmacy chain now pulls out of Maryland as stores continue to close after the company filed for Chapter 11 bankruptcy.

In October, Rite Aid filed for bankruptcy after incurring $ 3.3 billion in unpaid debt.

Over the past six years, Rite Aid has recorded almost $3 billion in losses and seen its stock price drop more than -90%.

The pharmacy chain operates a whopping 2,330 stores in 17 U.S. states, but this number is rapidly declining and will soon drop below 2,000.

In October, as part of its bankruptcy filing, it announced that 154 locations nationwide would soon close, but this list has been added to several times and has now reached approximately 230.

Below is the most updated list of Rite Aid pharmacy stores closing in Maryland:

5624 Baltimore National Pike, Baltimore, MD, 21228
5804 Ritchie Highway, Baltimore, MD, 21225
728 East Pulaski Highway, Elkton, MD, 21921
7501 Ritchie Highway, Glen Burnie, MD, 21061
7967 Baltimore Annapolis Boulevard, Glen Burnie, MD, 21060
5 Bel Air South Parkway, Suite 1347, Bel Air, MD, 21015
6400 Georgetown Blvd, Eldersburg, MD 21784
1720 Main St, Chester, MD 21619
4339 Ebenezer Rd, Baltimore, MD 21236
3425 Clifton Ave, Baltimore, MD 21216
1301 Eeast State St, Delmar, MD 21875

But Rite Aid isn’t the only pharmacy chain shuttering locations across the United States.

CBS News reports that “CVS, the largest U.S. chain, closed 244 stores between 2018 and 2020. In 2021, it announced plans to close 900 stores by 2024.”

Walgreens also said in 2019 that it would close 200 stores and in June announced an additional 150 store closures.

Also Read: Massive Layoffs in California Now Underway Prior to Holidays

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