Companies Likely to Drown in '09

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.

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