Three travel companies are now at high risk of bankruptcy according to Creditsafe Group, a financial outlook and credit report company.
Spirit Airlines has been on unofficial bankruptcy watch since the company’s merger with JetBlue fell apart, reports TheStreet.
There are real questions as to whether the super-low-cost airline model works, and Creditsafe sees a real risk of the airline ending up filing for Chapter 11 bankruptcy.
“Earlier this year, Spirit Airlines said it was looking to refinance its debt and hopes to refinance $1.1 billion of debt due in 2025,” according to Creditsafe.
“To make matters worse, the airline doesn’t have a stable track record of paying bills on time.”
Not paying bills on time is often a sign that a company is running out of cash.
“Late payments increased over several months in 2023.
For example, the number of late payments (1-30 days) rose from 7.00% in September 2023 to 30.87% in October 2023.
A similar pattern occurred soon after when the number of late payments (1-30 days) rose from 6.37% in November 2023 to 30.54% in December 2023 and then again to 51.08% in January 2024,” Creditsafe data showed.
Two rental car companies, Avis Budget Group and Hertz are facing similar problems.
“Avis Budget Group’s long-term debt has consistently increased for the last three years, and how late the company paid its bills spiked drastically from 8 days late in March to 31 days in April and remained high until September 2023,” Creditsafe shared.
Hertz has been following a similar path.
“The company’s number of delinquent payments (91+ days) increased consistently during the second half of 2023.
For instance, the number of delinquent payments (91+ days) rose from 4.64% in August to 6.90% in September, then rose again to 10.73% in October 2023, indicating it is having trouble paying its bills,” according to Creditsafe.
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Also Read: A Massive Company Now Announces Unexpected Layoffs in Arkansas
Other Economy News Today
A massive company now announces more store closures for 2024 after closing dozens of locations last year.
“These stores lose tens of millions of dollars a year, and their annual losses nearly doubled in just the last five years,” Walmart said in a press release.
They added, “We have invested hundreds of millions of dollars in the city [of Chicago]… It was hoped that these investments would help improve our stores’ performance.
Unfortunately, these efforts have not materially improved the fundamental business challenges our stores are facing.”
And in 2024, the retailer has already announced the closure of two California stores in January alone, including:Â
- Walmart Neighborhood Market on Imperial Avenue, San Diego
- Walmart at Fletcher Parkway, El Cajon
Now, it’s saying it will shutter two more locations, bringing the total store closure tally in 2024 to six.
Those stores are in the Baltimore area of Maryland and California.
So far, the total tally is:
- 2121 Imperial Ave. in San Diego CA)
- 605 Fletcher Parkway in El Cajon (CA)
- 2753 E. Eastland Center Dr in West Covina (CA)
- 4080 Douglas Blvd in Granite Bay (CA)
- 1238 Putty Hill Ave in Towson (MD)
- 3579 S. High St. in Columbus (OH)
Walmart cited poor performance as the reason for the two most recent closures, though it did not go into further detail.
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Also Read: This Massive Clothing Retailer Is Now Closing Three More Stores
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