Just four months into 2017, 10 U.S. retailers have filed for bankruptcy. Last year, the total number of American retailers that declared bankruptcy was 18.
» RELATED: 78 Sears, Kmart stores closing
And, according to new insights from S&P Global Market Intelligence released last week, there are more to come.
"The convenience of online shopping, and the downward pressure it has put on pricing, has radically altered consumer behavior," S&P analysts wrote. "Most shoppers now browse for value online, and the younger cohort of the prized millennial demographic, some of whom may never have developed a penchant for long afternoons at the mall, clearly prefers that channel."
To determine which companies are most at risk for being next to file bankruptcy, S&P researchers used a statistical model — the Probability of Default (PD) Fundamentals model — that calculates companies’ PDs over a one- to five-year period.
They identified the 10 U.S. retailers with one-year PDs ranging from 6.11 percent (significant risk) to 23.84 percent (highly leveraged credit risk).
» RELATED: Macy’s, Kmart, JCPenney: More retailers closing brick-and-mortar stores
A day after the report was released, one of the 10 at-risk companies, Bebe Stores Inc., announced plans to close all 168 of its stores.
Here are the 10 U.S. retailers ranked in order of likelihood to default, according to S&P:
1. Sears Holdings Corp., Illinois (Sears, KMart)
PD: 23.84%
2. DGSE Companies Inc., Texas (Dallas Gold and Silver Exchange)
PD: 14.87 percent
3. Appliance Recycling Centers of America Inc., Minnesota
PD: 11.96 percent
4. The Bon-Ton Stores Inc., Pennsylvania (Bon-Ton department store)
PD: 10.48 percent
5. Bebe Stores Inc., California (Bebe)
PD: 10.06 percent
6. Destination XL Group Inc., Massachusetts (Big & Tall men's apparel)
PD: 8.08 percent
7. Perfumania Holdings Inc., Florida (Perfumania.com)
PD: 7.24 percent
8. Fenix Parts Inc., Illinois (Automotive parts recycler)
PD: 6.98 percent
9. Tailored Brands Inc., Texas (Men's Wearhouse, Moores, Joseph Abboud)
PD: 6.8 percent
10. Sears Hometown and Outlet Stores Inc., Illinois (Sears Hometown and Sears Outlet)
PD: 6.11 percent
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