After narrowly avoiding the Retail Apocalypse, many companies are once again at risk of bankruptcy — and these 10 may be next

Bethany BironNov 11, 2022, 02:43 IST

Retailers are feeling the strain of the economic downturn, as cash-strapped Americans pull back on spending.
A recent Moody's report identified several companies at risk of defaulting as a possible recession nears.

It's been a difficult few years for the retail sector, as the pandemic wreaked havoc on balance sheets and led many companies to fall prey to the dreaded Retail Apocalypse.

Though the industry was starting to bounce back, an October report from Moody's Investors Service found defaults are expected to rise again as the economic downturn worsens.

However, the credit rating company said the number of defaults won't reach pandemic level-highs as the industry has "emerged in better shape to meet the growing challenges," analysts wrote in an October report.

A clothes shop tries to sell the last of its stock before closing down on February 1, 2012 in Stoke-On-Trent, England. Staffordshire has borne the brunt of the economic downturn with the loss of 21,100 manufacturing jobs which have fallen from 74,200 in 2006/07 to 53,100 in 2010/11, the highest in the UK according to a survey by the GMB union.Christopher Furlong/Getty

However, the credit rating company said the number of defaults won't reach pandemic level-highs as the industry has "emerged in better shape to meet the growing challenges," analysts wrote in an October report.

Here are the retailers that may default in the coming months, based on Moody's findings.

Shoppers look in the window of a retail store selling jewellery and displaying posters stating it is closing down in central Sydney, Australia, July 12, 2016.David Gray/Reuters

Bed Bath & Beyond

Bed Bath & Beyond wanted to prevent overpacked shelvesEmily Elconin/Reuters

Belk

John Greim/Getty Images

Boardriders Inc.

Fans pose by the standings board at the Quiksilver Pro New York tournament on September 9, 2011 in Long Beach, New York.Bruce Bennett/Getty Images

Bob's Discount Furniture

Lindsey Nicholson/UCG/Universal Images Group via Getty Images

Careismatic Brands

Dickies is known for its workwear.Matt Slocum/AP

Carvana

MARK RALSTON/AFP via Getty Images

Outerstuff

Children of the New York Yankees model a clothing line a press event hosted by Outerstuff in New York City.Paige Calamari/MLB via Getty Images

Party City

Shoshy Ciment/Business Insider

Premier Brands Group

99 Cents Only Stores

Plastic grocery bags from a 99 Cents Only Store in Los Angeles.Kevork Djansezian/Getty Images

I tested out Panera's new 'automated' drive-thru and now I think every fast food chain should use it

Cookies on the Business Insider India website

After narrowly avoiding the Retail Apocalypse, many companies are once again at risk of bankruptcy &mdash; and these 10 may be next

It's been a difficult few years for the retail sector, as the pandemic wreaked havoc on balance sheets and led many companies to fall prey to the dreaded Retail Apocalypse.

Though the industry was starting to bounce back, an October report from Moody's Investors Service found defaults are expected to rise again as the economic downturn worsens.

However, the credit rating company said the number of defaults won't reach pandemic level-highs as the industry has "emerged in better shape to meet the growing challenges," analysts wrote in an October report.

Here are the retailers that may default in the coming months, based on Moody's findings.

Bed Bath & Beyond

Belk

Boardriders Inc.

Bob's Discount Furniture

Careismatic Brands

Carvana

Outerstuff

Party City

Premier Brands Group

99 Cents Only Stores

After narrowly avoiding the Retail Apocalypse, many companies are once again at risk of bankruptcy — and these 10 may be next