Tuesday, March 10, 2009

Not a Picture Perfect Moment For Rite Aid

Today, Moody's Investor's Rating Service published a list called The Bottom Rung. This list provides information about 283 companies which Moody's predicts as having the greatest chance of failure this year because they will default on their debt. Moody's predicts 45% of the companies will fail by year end.

Included on the list, Barney's New York, Chiquita Brands, Dole Foods, Eddie Bauer, Ford, GM, Guitar Center, Jacuzzi, Orbitz, Reader's Digest, Sirius XM and Rite Aid, among others.

Finishing touches are just being made to a new Rite Aid store on the corner of Main and Union Streets in Middletown.

Perhaps one of the steps in granting zoning exceptions to business developments planning to come to town is to examine closely their financial status, and debt rating.

6 comments:

  1. Hmm. Well, even if Rite Aid fails, the building will still be there. And since it has a drive thru, perhaps a church would be interested in taking it over.

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  2. Hi -- Dave Lanzillo from Kodak here. Just wanted to provide some additional perspective.

    Kodak ended 2008 with more than $2.1 billion in cash, a debt balance of $1.3 billion, and no significant debt payments likely until 2010. Any speculation, however informed, suggesting that Kodak is less than financially sound, is irresponsible. Kodak is financially solid and we are taking the right actions to ensure that we remain a strong and enduring competitor.

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  3. Dave:

    Good to know from your perspective.

    What's with Moody's? They've not been spectacular in their predictions lately.

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  4. A drive thru has no business in a downtown setting. The goal to having a vibrant active downtown is to encourage you to park the car, walk and stay a while. Hopefully shopping, dinning and entertaining. It a waste of space.

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  5. Hold on just a cotton-pickin' minute, Anonymous @ 8:51, what's wrong with a drive-thru church? You could get absolution for sins without having to get out of the car. You could worship The Lord while running your eternal combustion engine. You could read Corinthians in the comfort of Corinthian Leather.

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  6. Rite Aid opens next week -- I talked to the people working inside.

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