The retail industry continues to wilt and whither on its debt-riddled vine, and according to a recent feature at RetailDive, there are at least 10 more big-name brands that could file for bankruptcy in 2017.
Among those in trouble are J. Crew, Eddie Bauer, Neiman Marcus, Sears and Vince, who all currently hold C-grade bond ratings from both Moody’s and Fitch Ratings — also known as a junk bond rating, which is just as shitty as it sounds.
Things are looking especially bleak at J. Crew. Once at the forefront of the Menswear boom, Fitch’s has included them on their “Bonds of Concern” list, which doesn’t sound as dire as it probably should: nearly $570 million in debt matures in 2019 and they’ve lost money in 11 of the past 12 quarters.
J. Crew almost secured some relief last month, but that deal ultimately “stalled after two lenders sued” over the assignment of the retailer’s intellectual rights, a subplot that improbably involved an unrestricted “Cayman Islands subsidiary.”
Neiman Marcus — owners of a cumbersome $4.9 billion “debt pile” — has “reported sales declines every quarter for the year” and was called “a walking death march” by retail consultant Howard Davidowitz in the story, while Eddie Bauer is desperately trying to not file for bankruptcy for the third time in 15 years.
You can read more about it at RetailDive.
