Companies filing for bankruptcy is unfortunately a familiar occurrence these days. Whether it’s due to an anemic economy and low customer demand, high pension costs, or rising commodity costs, many businesses around the country risk bankruptcy if they don’t act fast. According to data collected from GovernanceMetrics International, the following companies have a large probability of financial distress. This list should serve as a reminder for companies in similar situations to consult a Las Vegas bankruptcy attorney.
1. Barnes and Noble
Photo by Mike Kalasnik
Book seller Barnes and Noble lasted while competitor Borders went bankrupt because of their investment in the tablet reader Nook and online sales. It remains to be seen if the Nook can stand its own against Amazon.com’s Kindle. Barnes and Nobles distress probability is 12.05%, with $4.1 billion in assets.
2. Caesars Entertainment
Photo courtesy of: larrylobster
Staking the title of the largest casino entertainment company in the world, this casino giant has a financial distress probability of 7.28%, and assets worth $28.9 billion.
3. Office Depot
Photo by Mike Kalasnik
A global supplier of office supplies and services, Office Depot’s financial distress probability is at 11.90%, with $4.2 billion in assets.
4. Republic Airway Holdings
Photo courtesy of: Patrick Cardinal
This Indiana company owns Chautauqua Airlines, Frontier Airlines, Republic Airlines and Shuttle America, and is currently trying to sell troubled Frontier Airlines. Republic’s distress probability is 11.12%, and has $4.2 billion in assets.
Photo by NNECAPA
The upscale women’s clothes store has been criticized for not having a clear brand vision and lack of leadership. It’s distress probability is at 14.86%, with assets worth $0.7 billion.
6. United States Postal Service
Photo courtesy of: David Guo
USPS’s financial struggles have been no secret to the American public. USPS has a financial distress probability of 17.30%, and assets worth $23.4 billion. Ideas to avoid bankruptcy have included laying off employees, pension cuts, and stopping Saturday mail service. The question remains whether USPS can compete with FedEx and UPS.
To avoid your business finding itself in a similar predicament, be proactive and contact DeLuca and Associates today at 702.2524673.