- GRIT
- Posts
- Late Payments Spell Retail Disarray
Good Morning!
Happy Friday! Have a great weekend:
👉 Stores behind on payments
👉 Ford halts EVs
👉Yellen visits China
LATE: Stores Struggle
Before its bankruptcy last April, Bed Bath & Beyond struggled with financial issues, notably in paying suppliers on time. This led to shortages on store shelves, especially during the crucial holiday season. This pattern of financial distress led to bankruptcy, similar to what happened to RadioShack and Toys R Us. Experts say that delayed payments to suppliers can be a warning sign of financial trouble. Recently, other retailers like Peloton, Saks, Express, and Bath & Body Works have also been late in paying their suppliers, according to Creditsafe, a company that analyzes financial risk.
Source: Somerset
While late payments can sometimes be strategic for bigger companies with market power, sudden and unusual delays can signal deeper financial issues. Creditsafe points out that these payment trends are impor
ant in understanding a company's financial health. For example, Peloton experienced a spike in late payments but is working towards financial stability despite sales challenges and recent losses.
🎯 GRIT TAKE: This is not good news…upgrade to VIP now to read the full GRIT Take!
FORD: Slows EVs
Ford Motor is pushing back the launch of a new electric SUV and pickup truck, aiming instead to offer hybrid vehicles across its North American lineup by 2030. The company announced delays in production: the electric SUV in Canada is moved to 2027 instead of 2025, and the "T3" pickup truck is now set for 2026, previously planned for late 2025.
Source: CNN
These changes reflect wider industry trends, with slower EV adoption and high production costs. Despite scaling back on some EV investments due to these challenges, Ford remains committed to electric vehicles, ranking second in EV sales behind Tesla in the early part of the year. The SUV was part of a $1.3 billion plan to transform Ford’s Oakville Assembly Plant in Canada into an EV hub. Additionally, Ford's large Tennessee plant will start making a new electric truck in 2026, delayed from 2025, while continuing to build battery plants in Michigan, Tennessee, and Kentucky.
Yellen: Visits China
Janet Yellen, the U.S. Treasury Secretary, is in China discussing how to deal with excessive production and push for economic reforms. Her trip includes stops in Guangzhou and Beijing, focusing on the need for dialogue on economic issues and security.
Source: CNBC
It's part of broader efforts to address challenges and improve U.S.-China relations amid tensions. A report highlights China's issue with overproduction due to government support, suggesting a shift towards more market-driven policies. Yellen's visit aims to foster better communication between the two countries.
Headlines You Need To Know: 🎙
Chart of the Day
📊 What does financial security look like?
Source: CNBC
GRIT Meme of the Day 😂
Tag GRIT Capital on social media for a chance to be featured in our meme or Tweet of the day in our GRIT daily newsletter! 👇
Source: @wallstbets
Do you have feedback to share? Click HERE.
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Grit is a publisher of financial information, not an investment advisor. Grit does not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient. Grit does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.
THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN. INVESTORS SHOULD OBTAIN INDIVIDUAL INVESTMENT ADVICE BASED ON THEIR OWN CIRCUMSTANCES BEFORE MAKING AN INVESTMENT DECISION
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and Grit undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
Grit does not accept any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.
By using the Site or any related social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.
Please read: Terms of Use, Privacy Policy, Disclosure Policy, State Disclosure Policy, and Disclaimer Policy
If you have any questions please contact us at help@gritcap.io
Join the conversation