After narrowly avoiding the Retail Apocalypse, many companies are once again at risk of bankruptcy — and these 10 may be next

Their findings anticipate defaults to rise to 5.5%, up from the current rate of 1%, but still well below 23% in 2020.

"As the retail industry squares off for another period of rising defaults over the next 12 months, this time will be markedly different from the last downturn during the pandemic, when defaults skyrocketed," Moody's analysts wrote in the report.

Bed Bath & Beyond has had a particularly turbulent year.

The company closed 150 stores and slashed an estimated 20% of its corporate staff in September, after reporting sales dropped 26% in its most recent quarter compared to the same period last year.

Once one of America's leading home goods retailers, the Bed Bath & Beyond has struggled to adjust to shifting consumer demand and found difficulty aligning on a strategic vision amid a series of executive shakeups.

"The shift in consumer spending away from pandemic lifestyles have hurt retailers such Bed Bath and Beyond in the furniture and home decor space," Moody's wrote in its October report.

Belk, the North Carolina-based department store chain that operates in 16 states, returns to Moody's watchlist for another year after also making an appearance in 2021.

This year, analysts wrote department stores and apparel brands are "more vulnerable in shifts in consumer demand," and are particularly hard-hit by the impact of inflation on disposable income spending.

"Many discretionary companies in the apparel and department stores space have largely recovered to pre-pandemic levels, but are now at risk of declining as discounts increase and consumers spend more cautiously. This increases the risk for retailers such as Belk," Moody's analysts wrote.

Boardriders Inc. — the parent company of surf and sportswear apparel brands Quiksilver, Billabong, and RVCA— has the highest rate of debt growth, according to the Moody's report.

While Moody's analysts noted the company's "operating performance has been improving," Boardriders has shown signs of strife since 2020. The company also currently is embroiled in a legal battle with lenders who claim their pandemic rescue financing unfairly benefited other creditors, the Wall Street Journal reported in October.

Like Bed Bath & Beyond, Bob's Discount Furniture also struggled as consumer sentiments shifted away from home goods and demand dipped after the sector's massive pandemic boom. Moody's noted the company is in a "cyclically vulnerable sector," though benefits from "a moderate level of leverage."

Careismatic Brands — parent company of medical scrubs and uniform brands including Dickies and Cherokee — has faced stiffening competition in recent years from buzzy DTC brands like Figs.

In September, Bloomberg Law reported that sales dropped after a pandemic boost while non-product costs swelled by 30% — the latter in part due to legal fees associated with a lawsuit the company filed against Figs in 2019 claiming false advertising and unfair business practices.

Now the company is looking to cut costs and overhaul its supply chain, according to Bloomberg.

After becoming a pandemic darling, the used-car dealership Carvana took a dramatic turn in 2022 as the secondhand car market slowed. In November 2022, the company reported a third-quarter loss of $508 million, prompting shares to drop by 50%, Insider's Tim Levin reported.

Earlier this year, the company cut 2,500 jobs, an estimated 12% of its staff, part of an effort to find "a better balance between its sales volumes and staffing levels," Carvana wrote in an SEC filing.

Moody's analysts noted the company is currently "reflecting very weak credit metrics, persistent lack of profitability, and negative free cash flow generation."

Outerstuff — a New York-based company specializing in licensed sports apparel for major leagues including the NFL, NBA, MLB, and NHL — has struggled with mounting debt and lowered demand in the past year. Moody's cited its "history of operating challenges" and "near-term debt maturities" in its report.

Party City — which was particularly hard-hit by the pandemic, thanks in part to the decline in social events and the rising cost of helium — is still struggling to stay afloat.

The retailer announced in November 2022 that it is slashing its corporate staff by 19% after reporting disappointing Halloween sales and continued headwinds.

"While our overall enterprise-wide Halloween sales results were up year over year, they came in at the lower end of our expectations as macro pressures impacted customers' ability and willingness to increase spending on Halloween celebrations," CEO Brad Weston said in a statement to investors.

Premier Brands Group — the company formerly known as Nine West Holdings before it filed for Chapter 11 bankruptcy in 2019 — is a wholesale partner that provides apparel and accessories to major retailers. Moody's listed Premier among apparel companies like Belk that are especially vulnerable to decreased consumer spending.

Dollar stores have taken a beating in recent years as consumers decry their rising prices, and 99 Cent Only Stores — a California-based discount retailer with 350 stores in four states, according to its website — is no exception.

Moody's report notes the company is at a "competitive disadvantage" and has "negative free cash flow."