Carnival Cruise Lines Dropped To Junk Status, Canada Downgraded, GNC Bankruptcy, Travel Restrictions (Video)
Carnival Cruise Lines Dropped To Junk Status, Canada Downgraded, GNC Bankruptcy, Travel Restrictions Video by Silver Report
We have been warning of the surge in bankruptcies against record-high stock valuations creating a very unstable situation. We reported yesterday that we had the highest week of bankruptcies since the very worst week of the great recession and just like that another retailer filed for bankruptcy. GNC filed for chapter 11 bankruptcy and is said to be seeking a buyer for the distressed retailer. Along with the reorganization, they will be closing 1,000 stores in the US. The rise of the Robinhood investor has been the phenomenon of the 2020 recession and they have been pouring into companies that had a very high risk of default. GNC was one of those companies that have become somewhat of a retail investor favorite but who knows maybe the bankruptcy will cause even more to jump in with both feet.
Fitch Ratings downgraded Canada over it’s excessive debt load and had some dire warnings about the state of their banking system. Another distressed retail favorite that was downgraded to junk status was Carnival cruise lines which has actually been number 6 on the top retail favorites on Robinhood. Around the middle of March retail investors began pouring their money into cruise lines and pretty much anything that was selling off hard. Unfortunately, the downgrade means due to the uncertainty about when they will safely be able to return to operations they now have a heightened risk of missing their debt payments meaning bankruptcy could be in the card for this retail investor favorite. Apple has also decided they will be closing more stores this time in Texas due to safety concerns. And just when you thought we were on the verge of a V-shaped recovery things begin shutting down once again.