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The COVID-19 casualty list in the retail sector continues to grow as a majority of stores remain closed, with a few opening under heavy restrictions that are impacting consumer spending.
Footwear company, Caleres, headquartered in Clayton, is now projected as being at high risk for bankruptcy, according to “Retail Dive,” the leading global publication that covers news and trends in the retail industry. Caleres owns nearly 20 brands, including Famous Footwear, Sam Edelman, Naturalizer, Via Spiga and Vince.
“Retail Dive” analyzed data from CreditRiskMonitor that shows Caleres as having one of the largest two-month credit rating drops since the beginning of the COVID-19 pandemic, with a score of 2, and a 4% to 10% chance of bankruptcy. The scores, dubbed FRISK, calculate the chances of a company filing for bankruptcy within 12 months, based on credit ratings, stock volatility, financial metrics and proprietary data.
As of May 1, 11 retail companies had a FRISK score of 1, indicating the highest risk, with an estimated 10% to 50% chance of filing for bankruptcy. J. Crew, which was initially on the list at a score of 1, was removed on Monday, after filing for Chapter 11. Neiman Marcus and J.C. Penney, also with a score of 1, are expected to file for bankruptcy this month.
Click here for a list of 27 companies showing a credit rating of 1 or 2.
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