Flooring Retailer Empire Today at Risk of Default, S&P Says

Empire Today LLC, the flooring retailer known for its catchy jingle, faces a potential liquidity crunch that could result in a default within the next six months, according to S&P Global Ratings.

• S&P on Monday cut the company’s rating by one notch to CCC from CCC+
• “The downgrade reflects the risk that the company will experience challenges in generating meaningful FOCF in 2024, leading to weakening liquidity,” analysts wrote in a note Monday
  • “We expect revenue will continue to decline as consumers postpone highly discretionary spending,” they added
• The company reported a $7 million free operating cash flow ...