Title: The assessment of filed bankruptcy of a retail giant store

Authors: Reena Agrawal; Rohit Raj; Ajay Jha; Vimal Kumar

Addresses: Department of Finance and Accounting, Jaipuria Institute of Management, Lucknow – 226010, India ' Department of Information Management, Chaoyang University of Technology, Wufeng, Taichung – 41349, Taiwan ' Department of Operations Management, Jaipuria Institute of Management, Lucknow – 226010, India ' Department of Information Management, Chaoyang University of Technology, Taichung – 41349, Taiwan

Abstract: This study explored the financial indicators that were left unchecked and uncontrolled by Stage Store, Inc. from 2014 until 2019. An exploratory study was done using the secondary data collected from Securities Exchange Commission (SEC) website. An in-depth analysis was done to assess the profitability, liquidity, operational efficiency, and solvency of the organisation during the said period. This study identified a total of nine alarming signs that were neglected or missed by the company and thus proved to be fatal. In this research, we found that Stage Stores' financial performance demonstrated plenty of alarming indicators, which were ignored by the company. Right from growth in sales, return on assets, profit margin, cash position, and return on equity remained worrisome while there was an increase in the company's long-term debt obligations. Whether or not the organisation can cope and rebuild in a post-pandemic world, is to be explored.

Keywords: financial performance; financial analysis; financial distress; financial bankruptcy.

DOI: 10.1504/IJPM.2024.142029

International Journal of Procurement Management, 2024 Vol.21 No.3, pp.401 - 418

Received: 20 Jun 2023
Accepted: 02 Jul 2023
Published online: 07 Oct 2024 *

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