11 Retailers at Risk of Bankruptcy in 2024

Will your favorite retailer soon tip into bankruptcy?

A recent Retail Dive report citing CreditRiskMonitor data found that 11 retailers have been assigned very low FRISK scores at the beginning of the fourth quarter of 2023, indicating they might be in danger of declaring bankruptcy soon.

CreditRiskMonitor’s FRISK score is a proprietary score that indicates the level of financial stress a company is experiencing. It is based on the probability of a bankruptcy filing in the next 12 months. The lower the score, the higher the risk.

Here are the retailers that appear to be in financial trouble.

Vince

Sector: Apparel

CreditRiskMonitor FRISK score: 2 out of 10 (indicating a 4% to 9.99% probability of a bankruptcy filing within 12 months)

Vince began in 2002 and sells women’s and men’s apparel, footwear and accessories. It has both retail and outlet stores.

Petco

Sector: Pets

CreditRiskMonitor FRISK score: 2 out of 10 (indicating a 4% to 9.99% probability of a bankruptcy filing within 12 months)

Petco was founded in 1965 and has more than 1,500 locations across the United States and Mexico. There are also dozens of Petco stores that feature a veterinary hospital.

Kirkland’s

Sector: Home

CreditRiskMonitor FRISK score: 2 out of 10 (indicating a 4% to 9.99% probability of a bankruptcy filing within 12 months)

Founded in 1966, Kirkland’s has stores in more than 30 states. In 2022, the company changed its name to Kirkland’s Home.

The Container Store

Sector: Home

CreditRiskMonitor FRISK score: 2 out of 10 (indicating a 4% to 9.99% probability of a bankruptcy filing within 12 months)

The Container Store began in 1978 and now has dozens of stores in more than 30 states and the District of Columbia. The average size of its stores is 25,000 square feet.

Big Lots

Sector: Home

CreditRiskMonitor FRISK score: 2 out of 10 (indicating a 4% to 9.99% probability of a bankruptcy filing within 12 months)

The company that is now Big Lots began in 1967. The retailer has more than 1,000 locations in the United States.

A.K.A. Brands

Sector: Apparel

CreditRiskMonitor FRISK score: 2 out of 10 (indicating a 4% to 9.99% probability of a bankruptcy filing within 12 months)

A.K.A. Brands works with brands and founders and gives them “access to expertise, partners, innovation and a network of fellow founders to drive accelerated growth and reach their full potential,” according to the company’s website. Its brands include:

• Princess Polly
• Culture Kings
• Petal + Pup
• MNML

Rite Aid

Sector: Drugstore

CreditRiskMonitor FRISK score: 1 out of 10 (indicating a 9.99% to 50% probability of a bankruptcy filing within 12 months)

Rite Aid was founded in 1962 and has concentrated on building a presence on both the East Coast and West Coast.

Shortly after Retail Dive published its report, Rite Aid filed for Chapter 11 bankruptcy and began the process of shutting down some stores as it restructures operations.

Rent the Runway

Sector: Apparel

CreditRiskMonitor FRISK score: 1 out of 10 (indicating a 9.99% to 50% probability of a bankruptcy filing within 12 months)

Rent the Runway is an e-commerce platform that began life in 2009. It describes its mission as creating a “‘Closet in the Cloud”: a dream closet filled with an infinite selection of designer styles to rent, wear and return (or keep!).”

Qurate Retail

Sector: Video commerce

CreditRiskMonitor FRISK score: 1 out of 10 (indicating a 9.99% to 50% probability of a bankruptcy filing within 12 months)

Qurate Retail bills itself as the “largest player in video commerce” and includes brands such as QVC and HSN. It has a reach of 200 million homes worldwide and broadcasts on various television networks. It also has an online presence.

Joann

Sector: Craft

CreditRiskMonitor FRISK score: 1 out of 10 (indicating a 9.99% to 50% probability of a bankruptcy filing within 12 months)

Joann‘s roots stretch all the way back to 1943. It now has hundreds of stores in nearly every U.S. state and ships its goods to 53 countries.

Farfetch

Sector: Luxury

CreditRiskMonitor FRISK score: 1 out of 10 (indicating a 9.99% to 50% probability of a bankruptcy filing within 12 months)

Farfetch began in 2007 with the goal of becoming the primary global platform for luxury fashion. It now reaches customers in 190 countries.