American Airlines, Eastman Kodak, Hostess...
Lots of iconic brands have filed for bankruptcy recently. Some blamed weak consumer demand, others pointed to rising commodity costs and pension demands. In any case, you can count on many more companies to follow suit.
GovernanceMetric's International provided us with a list of companies with the greatest probability of financial distress. We picked out the biggest names.
Caesars Entertainment
Financial distress probability: 7.28%
Total assets: $28.9 billion
Founded: 1937
Caesars Entertainment is the world's largest casino entertainment company.
Financial distress probability was calculated by GovernanceMetrics International.
Clearwire (CLWR)
Financial distress probability: 9.54%
Total assets: $8.8 billion
Founded: 2003
Clearwire, a wireless internet service provider, has seen its stock gain 40% since October when investors feared that the company would default on its debt, reported Reuters. In December, Sprint provided the company with a lifeline by agreeing to pay $1.6 billion to Clearwire in the next four years.
Financial distress probability was calculated by GovernanceMetrics International.
McClatchy (MNI)
Financial distress probability: 10.16%
Total assets: $3.0 billion
Founded: 1857
McClatchy, the third-largest newspaper company in the US, has seen a significant drop in its advertising revenue this past year. Currently, the company is focused on its digital advertising in order to make up for the losses, reported Reuters.
Financial distress probability was calculated by GovernanceMetrics International.
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