PetSmart Inc.
This retailer of pet products has over 1,500 stores in Canada, Puerto Rico, and the U.S. PetSmart saw the need to restructure their advisors to better handle its debt problem worth $8 billion. According to Reuters, none of its debts will mature until 2022. The root cause of PetSmart’s problems is basically the same as the others.
More and more consumers are turning to e-commerce these days as it is more convenient and it sometimes offers cheaper prices. PetSmart is also affected by this trend and experienced some difficulties because of it. PetSmart did buy Chewy, an e-commerce site, but the $3.35 billion expense for the site added another burden to its existing debt. Reuters reported that it was the highest amount a company ever spent on an e-commerce site.
PetSmart
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. 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.”
Payless
