The retail sector has been suffering a lot of pain this year, with bankruptcies already happening at a record pace and more bankruptcies expected to come.
That’s according to The Wall Street Journal, citing data from S&P Global Market Intelligence, which reported that there are a list of 10 publicly traded retailers that could be at risk of filing for bankruptcy in 2017.
So far this year, 14 retailers have filed for bankruptcy and that is coming off 18 bankruptcy filings in 2016. Some of the major retailers that have filed for bankruptcy already include Payless, RadioShack and The Limited. “The shift to online shopping has left a lot of financial distress in its wake,” Jim Elder, director of risk services at S&P, wrote in a research note covered by the WSJ. “The results from the first quarter do not suggest that a quick recovery is on the horizon.”
As for which retailers will be the next to fall from the might of Amazon, S&P Global Market Intelligence said Sears Holding is leading the pack among the most likely to file for bankruptcy in 2017. According to the report, while Sears has been engaging in cost-saving measures, it’s not likely to be enough. Late last week, Sears announced it would close 92 Kmart pharmacies and 50 Sears Auto stores.
Coming in second is DSGE Companies, which is based in Dallas and sells precious metals and jewelry. The retailer has been struggling with a drop in sales, noted the report. Appliance Recycling Center of America rounded out the top three with the WSJ noting the recycler and seller of appliances used in the home currently has a market value of under $10 million.
The other seven include Bon-Ton Stores, Bebe Stores, Destination XL Group, Perfumania, Fenix Parts, Tailored Brands and Sears Hometown and Outlet Stores.