US Consumer Discretionary Companies in Financial Distress (October 2026)
As of 08 October 2026, 91 of 457 US Consumer Discretionary companies analysed (20%) show financial-distress indicators: 34 very weak, 27 weak and 30 on watch. The most common red flags in this sector are losses in each of the last 3 years, cash runway under 12 months, operations consume cash and operating profit does not cover interest.
What drives financial distress in Consumer Discretionary
Retail, autos, apparel, travel and leisure — demand-sensitive; sales declines plus leverage and lease obligations drive distress.
Most common red flags today: Losses in each of the last 3 years · Cash runway under 12 months · Operations consume cash · Operating profit does not cover interest
Consumer Discretionary companies with distress signals
| # | Ticker | Company / industry | Distress score | Band | Ohlson PD | Merton PD | From 52w high | Key indicators | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | AIIO | AIIO Auto Manufacturers |
Very weak | 95% | 23.2% | -98% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 2 | ECX | ECARX Holdings Inc. Auto Parts |
Very weak | 99% | 69.2% | -69% | Liabilities exceed assets (negative equity)Operating profit does not cover interestMarket-implied default probability >20% |
Details → | |
| 3 | PSNY | Polestar Automotive Holding UK PLC Auto Manufacturers |
Very weak | 100% | 97.0% | -82% | Liabilities exceed assets (negative equity)Operating profit does not cover interestCash runway under 12 months |
Details → | |
| 4 | PSNYW | Polestar Automotive Holding UK PLC Auto Manufacturers |
Very weak | 100% | 74.4% | -55% | Liabilities exceed assets (negative equity)Operating profit does not cover interestCash runway under 12 months |
Details → | |
| 5 | REBN | Reborn Coffee, Inc. Restaurants |
Very weak | 100% | 20.8% | -34% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 6 | SEGG | Sports Entertainment Gaming Global Corporation Gambling |
Very weak | 96% | 70.3% | -95% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
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| 7 | THCH | TH International Limited Restaurants |
Very weak | 100% | 98.7% | -58% | Liabilities exceed assets (negative equity)Operating profit does not cover interestMarket-implied default probability >20% |
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| 8 | TRNR | Interactive Strength Inc. Personal Services |
Very weak | 100% | 96.6% | -99% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 9 | VFS | VinFast Auto Ltd. Auto Manufacturers |
Very weak | 88% | 62.0% | -36% | Liabilities exceed assets (negative equity)Operating profit does not cover interestCash runway under 12 months |
Details → | |
| 10 | XELB | Xcel Brands, Inc. Apparel Manufacturing |
Very weak | 98% | 82.1% | -74% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 11 | DSS | DSS, Inc. Packaging & Containers |
Very weak | 99% | 89.2% | -59% | Cash runway under 12 monthsMarket-implied default probability >20%Severe working-capital shortfall |
Details → | |
| 12 | FRTT | Fort Technology Inc. Internet Retail |
Very weak | 99% | 39.5% | -77% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 13 | AZI | AZI Auto & Truck Dealerships |
Very weak | 99% | 68.4% | -99% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 14 | NTRP | NextTrip, Inc. Travel Services |
Very weak | 100% | 3.0% | -60% | Operating profit does not cover interestCash runway under 12 monthsSevere working-capital shortfall |
Details → | |
| 15 | WKHS | Workhorse Group, Inc. Auto Manufacturers |
Very weak | 99% | 69.6% | -79% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 16 | YHGJ | Yunhong Green CTI Ltd. Packaging & Containers |
Very weak | 92% | 61.9% | -72% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 17 | NXH | Neighborhood Intelligence, Inc. Internet Retail |
Very weak | 93% | 64.6% | -86% | Market-implied default probability >20%Losses in each of the last 3 yearsOperations consume cash |
Details → | |
| 18 | KBSX | FST Corp. Leisure |
Very weak | 95% | 5.4% | -8% | Operating profit does not cover interestVery high leverageOperations consume cash |
Details → | |
| 19 | NWTG | Newton Golf Company, Inc. Leisure |
Very weak | 100% | 0.6% | -40% | Liabilities exceed assets (negative equity)Cash runway under 12 monthsSevere working-capital shortfall |
Details → | |
| 20 | WKSP | Worksport Ltd. Auto Parts |
Very weak | 100% | 54.7% | -89% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 21 | VMAR | Vision Marine Technologies Inc. Recreational Vehicles |
Very weak | 99% | 91.7% | -100% | Operating profit does not cover interestMarket-implied default probability >20%Losses in each of the last 3 years |
Details → | |
| 22 | GGR | Gogoro Inc. Auto Manufacturers |
Very weak | 90% | 88.4% | -55% | Operating profit does not cover interestMarket-implied default probability >20%Losses in each of the last 3 years |
Details → | |
| 23 | NOMA | Nomadar Corp. Leisure |
Very weak | 90% | 14.6% | -86% | Operating profit does not cover interestSevere working-capital shortfallOperations consume cash |
Details → | |
| 24 | CCHH | CCHH Restaurants |
Very weak | 84% | 83.7% | -99% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 25 | NDLS | Noodles & Company Restaurants |
Very weak | 98% | 0.7% | -26% | Liabilities exceed assets (negative equity)Operating profit does not cover interestSevere working-capital shortfall |
Details → | |
| 26 | LUCK | Lucky Strike Entertainment Corporation Leisure |
Very weak | 70% | 90.6% | -50% | Liabilities exceed assets (negative equity)Market-implied default probability >20%Severe working-capital shortfall |
Details → | |
| 27 | VEEE | Twin Vee Powercats Co. Recreational Vehicles |
Very weak | 92% | 79.4% | -90% | Cash runway under 12 monthsMarket-implied default probability >20%Losses in each of the last 3 years |
Details → | |
| 28 | CGTL | CGTL Specialty Retail |
Very weak | 100% | 9.2% | -96% | Cash runway under 12 monthsRevenue collapseOperations consume cash |
Details → | |
| 29 | NXB | NextBoat Inc. Auto & Truck Dealerships |
Very weak | 98% | 43.5% | -47% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 30 | RDNW | RideNow Group, Inc. Auto & Truck Dealerships |
Very weak | 81% | 14.4% | -42% | Liabilities exceed assets (negative equity)Operating profit does not cover interestLosses in each of the last 3 years |
Details → | |
| 31 | RENT | Rent the Runway, Inc. Apparel Retail |
Very weak | 93% | 75.0% | -81% | Liabilities exceed assets (negative equity)Market-implied default probability >20%Share price down >80% from 52-week high |
Details → | |
| 32 | SDA | SunCar Technology Group Inc. Auto & Truck Dealerships |
Very weak | 65% | 94.8% | -83% | Operating profit does not cover interestMarket-implied default probability >20%Losses in each of the last 3 years |
Details → | |
| 33 | BQ | BQ Specialty Retail |
Very weak | 22% | 84.3% | -96% | Market-implied default probability >20%Losses in each of the last 3 yearsOperations consume cash |
Details → | |
| 34 | EMPD | Empery Digital Inc. Recreational Vehicles |
Very weak | — | — | -61% | Cash runway under 12 monthsLosses in each of the last 3 yearsRevenue collapse |
Details → | |
| 35 | YJ | Yunji Inc. Internet Retail |
Weak | 23% | 62.2% | -63% | Market-implied default probability >20%Losses in each of the last 3 yearsOperations consume cash |
Details → | |
| 36 | BXBL | Boxabl Inc. Residential Construction |
Weak | 100% | 0.0% | -79% | Cash runway under 12 monthsLosses in each of the last 3 yearsRevenue collapse |
Details → | |
| 37 | PRPL | Purple Innovation, Inc. Furnishings, Fixtures & Appliances |
Weak | — | — | -92% | Liabilities exceed assets (negative equity)Losses in each of the last 3 yearsOperations consume cash |
Details → | |
| 38 | ORBS | Eightco Holdings Inc. Packaging & Containers |
Weak | 62% | 1.5% | -92% | Operations consume cashShare price down >80% from 52-week highOhlson O-score signals likely failure |
Details → | |
| 39 | SSM | Sono Group N.V. Auto Manufacturers |
Weak | 99% | 42.2% | -86% | Liabilities exceed assets (negative equity)Market-implied default probability >20%Share price down >80% from 52-week high |
Details → | |
| 40 | HWH | HWH International Inc. Restaurants |
Weak | 99% | 0.0% | -18% | Cash runway under 12 monthsLosses in each of the last 3 yearsRevenue collapse |
Details → | |
| 41 | INVZ | Innoviz Technologies Ltd. Auto Parts |
Weak | 95% | 17.3% | -87% | Losses in each of the last 3 yearsOperations consume cashShare price down >80% from 52-week high |
Details → | |
| 42 | RIVN | Rivian Automotive, Inc. Auto Manufacturers |
Weak | 57% | 0.2% | -36% | Operating profit does not cover interestLosses in each of the last 3 yearsMaterial debt with no EBITDA |
Details → | |
| 43 | VENU | Venu Holding Corporation Restaurants |
Weak | 49% | 72.7% | -90% | Operating profit does not cover interestMarket-implied default probability >20%Losses in each of the last 3 years |
Details → | |
| 44 | BALY | Bally's Corporation Resorts & Casinos |
Weak | 71% | 11.2% | -28% | Operating profit does not cover interestLosses in each of the last 3 yearsVery high leverage |
Details → | |
| 45 | ESYN | EnerSyn Global Inc. Restaurants |
Weak | 97% | 0.0% | -23% | Losses in each of the last 3 yearsRevenue collapseOperations consume cash |
Details → | |
| 46 | ATER | Aterian, Inc. Furnishings, Fixtures & Appliances |
Weak | — | — | -56% | Cash runway under 12 monthsLosses in each of the last 3 yearsRevenue collapse |
Details → | |
| 47 | LESL | Leslie's, Inc. Specialty Retail |
Weak | — | — | -100% | Liabilities exceed assets (negative equity)Distress language in recent newsShare price down >80% from 52-week high |
Details → | |
| 48 | STKS | The ONE Group Hospitality, Inc. Restaurants |
Weak | 95% | 90.0% | -51% | Market-implied default probability >20%Severe working-capital shortfallVery high leverage |
Details → | |
| 49 | CENN | Cenntro Inc. Auto Manufacturers |
Weak | — | — | -90% | Cash runway under 12 monthsLosses in each of the last 3 yearsRevenue collapse |
Details → | |
| 50 | CLIK | CLIK Personal Services |
Weak | 21% | 53.6% | -90% | Market-implied default probability >20%Operations consume cashShare price down >80% from 52-week high |
Details → | |
| 51 | FLYE | Fly-E Group, Inc. Auto Manufacturers |
Weak | — | — | -89% | Cash runway under 12 monthsOperations consume cashShare price down >80% from 52-week high |
Details → | |
| 52 | NHTC | Natural Health Trends Corp. Internet Retail |
Weak | 80% | 10.4% | -77% | Operations consume cashOhlson O-score signals likely failureTrading below $1 |
Details → | |
| 53 | WPRT | Westport Fuel Systems Inc. Auto Parts |
Weak | 88% | 0.0% | -25% | Losses in each of the last 3 yearsRevenue collapseOperations consume cash |
Details → | |
| 54 | NUTR | NusaTrip Incorporated Travel Services |
Weak | 97% | 0.0% | -3% | Cash runway under 12 monthsRevenue collapseOhlson O-score signals likely failure |
Details → | |
| 55 | FFAI | Faraday Future Intelligent Electric Inc. Auto Manufacturers |
Weak | — | — | -100% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 56 | RGS | Regis Corporation Personal Services |
Weak | 59% | 10.2% | -5% | Severe working-capital shortfallThin interest coverageVery high leverage |
Details → | |
| 57 | BARK | BARK, Inc. Specialty Retail |
Weak | — | — | -56% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 58 | EFOI | Energy Focus, Inc. Furnishings, Fixtures & Appliances |
Weak | — | — | -54% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 59 | NEGG | Newegg Commerce, Inc. Internet Retail |
Weak | 52% | 10.0% | -88% | Losses in each of the last 3 yearsOperations consume cashShare price down >80% from 52-week high |
Details → | |
| 60 | PLCE | The Children's Place, Inc. Apparel Manufacturing |
Weak | — | — | -79% | Liabilities exceed assets (negative equity)Operations consume cashMassive shareholder dilution |
Details → | |
| 61 | SES | SES AI Corporation Auto Parts |
Weak | 57% | 0.3% | -78% | Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure |
Details → | |
| 62 | DBGI | Digital Brands Group, Inc. Apparel Retail |
Watch | — | — | -99% | Losses in each of the last 3 yearsRevenue collapseOperations consume cash |
Details → | |
| 63 | AMBP | Ardagh Metal Packaging S.A. Packaging & Containers |
Watch | 60% | 0.0% | -15% | Liabilities exceed assets (negative equity)Thin interest coverageVery high leverage |
Details → | |
| 64 | CHPT | ChargePoint Holdings, Inc. Specialty Retail |
Watch | — | — | -34% | Liabilities exceed assets (negative equity)Losses in each of the last 3 yearsOperations consume cash |
Details → | |
| 65 | LVWR | LiveWire Group, Inc. Recreational Vehicles |
Watch | — | — | -76% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 66 | GRSD | Grandstand Limited Gambling |
Watch | 84% | 76.7% | -82% | Market-implied default probability >20%Material debt with no EBITDAShare price down >80% from 52-week high |
Details → | |
| 67 | KNDI | Kandi Technologies Group, Inc. Recreational Vehicles |
Watch | 12% | 10.3% | -50% | Revenue collapseOperations consume cashTrading below $1 |
Details → | |
| 68 | LCID | Lucid Group, Inc. Auto Manufacturers |
Watch | — | — | -85% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 69 | MYSZ | My Size, Inc. Apparel Retail |
Watch | — | — | -87% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 70 | SRI | Stoneridge, Inc. Auto Parts |
Watch | 84% | 2.8% | -29% | Operating profit does not cover interestLosses in each of the last 3 yearsMaterial debt with no EBITDA |
Details → | |
| 71 | EVGO | EVgo, Inc. Specialty Retail |
Watch | — | — | -75% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 72 | HOFT | Hooker Furnishings Corporation Furnishings, Fixtures & Appliances |
Watch | — | — | -28% | Cash runway under 12 monthsOperations consume cashLosses in 2 of the last 3 years |
Details → | |
| 73 | PRTS | CarParts.com, Inc. Auto Parts |
Watch | — | — | -14% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 74 | TRON | Tron Inc. Leisure |
Watch | 27% | 0.0% | -70% | Losses in each of the last 3 yearsOperations consume cashMassive shareholder dilution |
Details → | |
| 75 | PLBY | Playboy, Inc. Apparel Manufacturing |
Watch | — | — | -64% | Losses in each of the last 3 yearsOperations consume cashTrading below $1 |
Details → | |
| 76 | IPW | iPower Inc. Internet Retail |
Watch | — | — | -100% | Cash runway under 12 monthsShare price down >80% from 52-week highLosses in 2 of the last 3 years |
Details → | |
| 77 | STLA | Stellantis N.V. Auto Manufacturers |
Watch | 40% | 79.6% | -63% | Operating profit does not cover interestMarket-implied default probability >20%Deep share-price drawdown |
Details → | |
| 78 | HYLN | Hyliion Holdings Corp. Auto Parts |
Watch | 100% | 0.0% | -53% | Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure |
Details → | |
| 79 | FLWS | 1-800-FLOWERS.COM, Inc. Specialty Retail |
Watch | — | — | -47% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperating-margin collapse |
Details → | |
| 80 | YTRA | Yatra Online, Inc. Travel Services |
Watch | 7% | 92.6% | -53% | Market-implied default probability >20%Operations consume cashTrading below $1 |
Details → | |
| 81 | ABLV | ABLV Specialty Retail |
Watch | 82% | 0.4% | -18% | Operating profit does not cover interestVery high leverageSteep revenue decline |
Details → | |
| 82 | CNTY | Century Casinos, Inc. Resorts & Casinos |
Watch | — | — | -68% | Liabilities exceed assets (negative equity)Trading below $1Losses in each of the last 3 years |
Details → | |
| 83 | MWYN | Marwynn Holdings, Inc. Furnishings, Fixtures & Appliances |
Watch | — | — | -6% | Cash runway under 12 monthsOperations consume cashLosses in 2 of the last 3 years |
Details → | |
| 84 | QS | QuantumScape Corporation Auto Parts |
Watch | 71% | 0.0% | -75% | Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure |
Details → | |
| 85 | VIRC | Virco Mfg. Corporation Furnishings, Fixtures & Appliances |
Watch | 37% | 0.0% | -15% | Operating profit does not cover interestVery high leverageSteep revenue decline |
Details → | |
| 86 | SYPR | Sypris Solutions, Inc. Auto Parts |
Watch | — | — | -55% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 87 | DFH | Dream Finders Homes, Inc. Residential Construction |
Watch | 35% | 96.5% | -64% | Market-implied default probability >20%Material debt with no EBITDADeep share-price drawdown |
Details → | |
| 88 | TDUP | ThredUp Inc. Internet Retail |
Watch | — | — | -75% | Losses in each of the last 3 yearsOperations consume cashCash runway under 24 months |
Details → | |
| 89 | CNNE | Cannae Holdings, Inc. Restaurants |
Watch | — | — | -12% | Losses in each of the last 3 yearsOperations consume cashCash runway under 24 months |
Details → | |
| 90 | FOSL | Fossil Group, Inc. Footwear & Accessories |
Watch | — | — | -3% | Losses in each of the last 3 yearsOperations consume cashCash runway under 24 months |
Details → | |
| 91 | MRDN | Meridian Holdings Inc. Gambling |
Watch | 96% | 3.3% | -26% | Severe working-capital shortfallOhlson O-score signals likely failureLosses in 2 of the last 3 years |
Details → |
Frequently asked questions
Which Consumer Discretionary companies are in financial distress?
As of 2026-10-08, 91 US Consumer Discretionary companies show financial-distress indicators (34 very weak, 27 weak and 30 on watch). The table on this page ranks them by score with the indicators behind each one. These are statistical signals, not predictions that any company will file.
How many Consumer Discretionary companies are in financial trouble?
91 of 457 analysed (20%); 34 are in the 'Very weak' band.
What are the biggest financial risks for Consumer Discretionary companies?
Retail, autos, apparel, travel and leisure — demand-sensitive; sales declines plus leverage and lease obligations drive distress. Right now the most frequent red flags are losses in each of the last 3 years, cash runway under 12 months, operations consume cash and operating profit does not cover interest.
What happens to shareholders if a company becomes insolvent?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.