Bankruptcy Prediction in Retail Industry Using Logistic Regression

In view of the failure of high profile companies like Circuit City and Linens n Things, Financial distress or bankruptcy prediction has generated much interest recently. This research develops and tests a model for the prediction of bankruptcy of retail firms. We use accounting variables such as inventories, liabilities, receivables, net income (loss), and revenue. Some guiding discriminate rule is given and a few factors were identified as measures of a profitable company