This Popular Retailer Is Now At High Risk For Bankruptcy
A popular retailer is now at high risk for bankruptcy after the struggling chain had its CreditRiskMonitor Frisk Score lowered to a 1.
Joann, a brand focused on crafts like sewing, has been struggling, and without a strong holiday season, a number of factors suggest a Chapter 11 bankruptcy filing remains a clear possibility, reports TheStreet.
“In addition to appearing in the top spot on RetailDive’s list of retailers that need a strong holiday season, Joann has also gotten a major negative rating from CreditRisk Monitor.
The struggling chain recently had its CreditRiskMonitor Frisk Score lowered to a 1.”
Based on history, companies that get a 1 have between a 10% and 50% chance of filing for bankruptcy.
Joann has recently received a delisting notice from the Nasdaq, has more than $1.1 billion in debt, and does not have a permanent CEO.
Shares of the company stock have fallen more than -81% this year-to-date.
Third-quarter sales dropped -4.1% and the company’s loss widened to -$21.6 million from -$17.5 million, both from the year-earlier period.
“With continued progress and another quarter of strong execution against our strategic priorities, we were able to deliver these results despite what remains a dynamic and challenging consumer and discretionary retail environment,” said Chief Customer Officer Chris DiTullio.
“Our third quarter paired a focus on operational retail fundamentals with an agile data-driven approach, helping us to win in our core categories while overdelivering on the implementation and execution of our Focus, Simplify, and Grow cost-savings initiative,” he said.
“This has enabled us to stabilize the overall business, rightsize our expense structure, and capitalize on trending growth areas.”
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Also Read: A US Company Now Declares An Unexpected Bankruptcy
Other Economy News Today
A massive US bank is now closing accounts without warning according to several customer reports.
A Chase customer is currently asking for help as the bank abruptly closed four accounts without notice.
The person described the situation on Reddit where several other customers said they had been through the same exact experience.
On the Chase Bank subreddit, the customer wrote that they had four accounts, all of which were closed “without any notice at all.”
“When I called they refused to give me any information at all. They locked all my accounts and I can’t even transfer my money or withdraw it from an ATM.
“I have no idea what to do. I have so many bills about to be due,” they said.
In the comments, they further explained that they hadn’t recently made any big purchases or tried to cash a check, and in the past, they had only overdrafted the account once.
Another user replied that the same thing had happened to them during the pandemic.
“Worst experience I’ve had with any banks. Ruined my credit, no money to buy food, and almost went homeless,” they wrote.
Two weeks later they were sent a check for the remaining balance.
A third person shared a similar experience and urged the original poster to “don’t bother fighting the customer service or staff” on the decision as they won’t give out extra information.
Two weeks later they were sent a check for the remaining balance.
A third person shared a similar experience and urged the original poster to “don’t bother fighting the customer service or staff” on the decision as they won’t give out extra information.
Someone else added: “They also closed my account and they told me they have the right to close my account, just like I have the right to close my own account.”
The original poster didn’t share an update regarding whether or not they were able to resolve the issue.
Also Read: A US Bank is Now Denying Customers Access to Money
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