PetSmart Inc.
The pet product company has more than 1,500 shops in Puerto Rico, Canada, and the United States. PetSmart deemed it important to restructure its advisors so that the team can handle its $8 billion debt. Reuters has said that the debts would not reach maturity until 2022. The company has suffered from e-commerce competitors. It recently joined the game by shelling out $3.35 billion for an e-commerce site.
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 filed for bankruptcy in 2017, which led to laying off employees and closing down 600 stores. Luckily, it made a comeback after going through a reorganization in August 2017. S&P Capital Markets reported it is still at risk of nonpayment. In 2017, CEO Paul Jones said, “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