Pret a Manger is top of the vulnerable retailers list ahead of next week’s rent quarter day, according to Company Watch.
The retailer made a surprise entry into the top spot, despite the strength of the coffee shop market, with a health score of just four out a possible 100.
Company Watch pointed to the chain’s £144m negative net worth, excessive leveraging, negative working capital and high levels of intangible assets as well as the fact it is loss making.
Pret currently has 320 shops and announced in February that it planned to open a further 50 this year, half of which would be in the UK.
Company Watch’s listing, compiled for EG, covers every retailer with a turnover above £250m and uses data covering profit management, asset management and funding management to assess the health of firms.
Luxury brands dominate the top ten healthiest retailers.
Nick Hood, business analyst at Company Watch, said: “The gulf between the retail leaders and laggards is wide. The leading companies are all substantially profitable and carry modest debt or are cash rich. Their less-fortunate rivals are almost universally loss making.”
Pret a Manger declined to comment.
nadia.elghamry@estatesgazette.com
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