PetSmart Inc.
PetSmart Inc. runs operations in more than 1,500 stores across North America. However, the retailer of pet products needs to restructure its debts that total $8 billion. Reuters reported that they will only mature in 2022, however. Its problem is rooted in the fact that people are turning to online shopping, which is generally more affordable and convenient. It has decided to buy an e-commerce site called Chewy for $3.35 billion. While this looks like a step in the right direction, it also added to the company’s expenses. This amount is also the highest ever spent on e-commerce!
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
Payless applied for bankruptcy protection in 2017. The shoe retailer also had to lay off jobs and close hundreds of stores. The good thing is that the company bounced back after a reorganization in August 2017. S&P Capital Markets still say that nonpayment is still a possibility. CEO Paul Jones said this 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
