Companies Likely to Drown in '09

By Kevin Spak,  Newser Staff
Posted Mar 12, 2009 1:34 PM CDT
Companies Likely to Drown in '09
Blockbuster has spent a lot of money trying out new strategies, but it's far from certain it will be able to borrow more when credit lines expire this summer.   (AP Photo)

As the recession deepens, the Motley Fool lists companies it thinks aren’t long for this world. Some highlights:

  • Rite Aid: Management has twice lowered its 2009 outlook, Wal-Mart is threatening, and its acquisition of Brooks and Eckerd had some nasty unintended consequences.
  • Sirius: Remains unprofitable, and its big contracts (think Howard Stern) look unsustainable.
  • Sbarro: Almost all its locations are in malls, and mall traffic is way down.

  • Six Flags: It’s been losing money for years, and Moody’s expects cash flow to go negative this year. A bad summer, and the ride’s over.
  • Claire’s Stores: Analysts think it’s close to defaulting, and retail looks awful.
  • Blockbuster: When credit lines expire in August, we’ll see if consumer cutbacks and new media competition has sunk the beleaguered video chain.
  • Krispy Kreme: The donuts are great, but the chain overexpanded.
For more, click the link below. (More bankruptcy stories.)

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