Over the last year, Peloton, Saks, Express and Bath & Body Works have often failed to pay vendors on time, a sign they could be struggling to manage cash…
Data from business intelligence firm Creditsafe shows Peloton, Saks, Express and Bath & Body Works have routinely failed to pay their vendors on time.
Running low on cash and needing a strong holiday quarter, the retailer's position — and in turn its relationship with vendors — only got worse. The cycle continued until the big boxerSimilar dynamics accelerated the demise of other once-ubiquitous retailers, such as RadioShack and Toys R Us.
Creditsafe's insights are based in part on companies' payment history with suppliers, collected through its"global network of partners and trade payment contributors." The company is struggling with cash flow partially because it's not selling enough of its exercise equipment, which is costly to make, according to an analysis of Peloton's securities filings.of $194.9 million, while sales fell to $743.6 million, down 6% from a year earlier. The company is trying to return to growth by June, later than previously expected.
"We have excellent relationships with our vendor partners and do not see the same fluctuations or monthly drivers in payment times that are being reported," the spokesperson said. The liquidity infusion will be used for"growth initiatives" and"general working capital purposes," the retailer said in a news release.The apparel retailer's business has faced pressure as discretionary spending slows and it manages a mounting pile of debt.
He said the company is working with the IRS to move the claim forward"given the importance of this receivable to our liquidity."
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