Payless
In 2017, this shoe retailer filed for Chapter 11 bankruptcy protection, let go of their employees and closed more than 600 stores. Fortunately, Payless managed to make a successful comeback after reorganizing in August 2017. However, S&P Capital Markets says that the company is still in danger of nonpayment. Even though Payless had to close down hundreds of its stores, it still has a lot of stores (3, 500 to be exact!) to run while it is trying to handle the problems it is facing.
Payless
Paul Jones, Payless’ CEO, said in an interview in 2017, “We have accomplished our goals of strengthening our balance sheet and restructuring our debt load, positioning Payless to create substantial value for our stakeholders.”
BKH Acquisition Corp.
BKH Acquisition Corp., through its subsidiary Caribbean Restaurants, runs more than 100 Burger King restaurants in Puerto Rico. However, the company made it on the list of a division of New Generation Research, Inc. called Distressed Company Alert. In their report, BKH Acquisition Corp got a “low rating.” In fact, S&P Global Ratings downgraded BKH Acquisition Corp’s credit rating to CCC+ on January 11, 2017, from B-.
BKH Acquisition Corp.
S&P only gives this rating when it deems a company to be vulnerable. Olya Naumova, a credit analyst, explained that the downgrade was mostly due to the persistent economic weakness of Puerto Rico as well as the company’s ongoing credit crisis.
