Why Shake Shack Says Short Thermal Paper

Appvion Inc. is the Canary in the Coal Mine

Appvion Inc. (summary below) filed for bankruptcy early Monday morning. This shouldn't have come as a surprise to people following the situation as (i) the company had previously issued a "going concern" warning and (ii) S&P Global Ratings had issued a credit downgrade. The First Day Declaration filed in conjunction with the bankruptcy notes that the thermal paper segment is being counted on for growth. Seems like that segment, then - currently 60% of net sales - would be the cornerstone of a restructuring. It's not clear from the papers how much of that business is point-of-sale receipts and coupons. We HAVE to imagine, though, that that portion of the segment is under threat. To point, note that on Monday Shake Shack ($SHAK) announced that it will be testing a cashless kiosk near New York University in New York City's East Village neighborhood. Cashless and receipt-less. Notably, Sweetgreen has also taken this step. Disruption, in real time.