Dead Stores Selling

According to investment blogger Jeff Reeves, two big retailers are in zombie mode where it's a matter of time before they head into bankruptcy: drugstore chain Rite Aid and jewelry kingpin Zales. Rite Aid generated only one profitable quarter in four years and its $6 billion in debt is about 25% of its annual revenue. Zales' sales has steadily dropped year after year, from $2.43 billion in 2007 to $1.61 billion in 2010 as the company shed stores, although its debt is a reasonable $300 million.