This study aims to examine the projection of the bankruptcy of textile and garment companies and investigate whether there is an effect of the potential bankruptcy of the company on stock returns. The sample in this study were textile and garment companies that went public on the Indonesia Stock Exchange (IDX) in the period 2010 to 2014, where 16 companies met the criteria. The data used is taken from the general description of the company or company profile, the company's financial statements including the balance sheet and income statement. The dependent variable in this study is stock returns, while the independent variable is the Altman Score. Data analysis methods are Altman Z-Score ratio analysis and regression analysis. From the calculation of the financial ratio of Altman Z-Score from 2010 to 2014, most textile and garment companies on the IDX have the potential for bankruptcy. From the regression results, it was concluded that stock returns were not affected by the potential value of bankruptcy. However, management needs to be careful in managing and running the company's operations by continuing to improve the company's performance so as not to disrupt the continuity of its business. Investors must always be careful when buying company shares by always looking at the condition of the company's fundamentals.