Companies Likely to Drown in '09

By Kevin Spak,  Newser Staff
Posted Mar 12, 2009 1:34 PM CDT
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)
camera-icon View 2 more images

(Newser) – 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.