By Jennifer Calfas
April 24, 2017

Retailers in the United States are filing for bankruptcy at a record pace.

Already this year, 14 retailers have declared bankruptcy, including the companies behind Payless, The Limited, and BCBG. That’s not far from 18, the total number of retailers that declared bankruptcy in 2016, according to insights from S&P Global Market Intelligence released last week.

And there may be more to come. The S&P report shows several more retailers likely to file bankruptcy soon. Sears Holding Corp., which last month said it had “substantial doubt” it would continue, comes in at the top of the list with a 23.84% chance of going bankrupt in the next year.

Brick-and-mortar retailers are suffering due to an increase in e-commerce and online shopping—despite an overall increase in consumer spending in the U.S.

“It is widely agreed that the U.S. is over-stored and that the solution for flat or declining in-store sales resides to a significant degree online, where the most sales growth is now taking place,” according to S&P Global Market Intelligence.

Just days after S&P’s report was released, Bebe, which sells women’s clothing, announced plans to close all 168 of its stores. It is unclear if the company will sell clothes online despite the store closures, but S&P predicts the company has a high chance of filing for bankruptcy.

Here’s S&P’s full list, including the likelihood the companies will default in the next year:

  1. Sears Holdings Corp. (Sears and KMart)
    Probability of Default: 23.84%
  2. DGSE Companies Inc. (Dallas Gold and Silver Exchange)
    Probability of Default: 14.87%
  3. Appliance Recycling Centers of America Inc. (Appliance recycling service company)
    Probability of Default: 11.96%
  4. The Bon-Ton Stores Inc. (Bon-Ton, a department store chain)
    Probability of Default: 10.48%
  5. Bebe Stores Inc. (Bebe)
    Probability of Default: 10.06%
  6. Destination XL Group Inc. (Big & Tall Men’s Apparel)
    Probability of Default: 8.08%
  7. Perfumania Holdings Inc. (Perfumania.com)
    Probability of Default: 7.24%
  8. Fenix Parts Inc. (Automotive parts recycler)
    Probability of Default: 6.98%
  9. Tailored Brands Inc. (Men’s Wearhouse, Moores, Joseph Abboud)
    Probability of Default: 6.8%
  10. Sears Hometown and Outlet Stores Inc. (Sears Hometown and Outlet)
    Probability of Default: 6.11%

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