17 Massachusetts Retailers On Verge Of Bankruptcy, New Moody's Report Says

The ranks of distressed retailers is set to keep growing over the next 12 to 18 months, and 17 that have stores in Massachusetts are on the verge of bankruptcy and could be subject to closure, according to a newly released Moody's Investors Service report.

Overall, 22 national retailers had debt ratings of Caa or lower —higher than the number of bankrupt-leaning retailers during the Great Recession. of 2008-2009. Debt rated at Caa or below is the lowest rank on Moody's credit rating spectrum. Seventeen of those have Massachusetts locations.

"The majority of retailers remain fundamentally healthy," Moody's Lead Retail Analyst Charlie O'Shea said in a press release. "But as select groups of retailers continue to deteriorate — in particular department stores and specialty retailers — we believe the distressed ranks will keep growing, fueled in part by distinct vulnerabilities."

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Here is the list of retailers with stores in Massachusetts that are on the verge of bankruptcy:

• Bon-Ton
• Calceus Acquisition (owns Cole Haan)
• Charlotte Russe
• Charming Charlie
• Chinos Intermediate Holdings (owns J. Crew)
• Claire's Stores
• David's Bridal
• Everest Holdings (owns Eddie Bauer)
• Evergreen AcqCo 1 LP (owns Savers)

• Gymboree
• Neiman Marcus
• Nine West
• Sears Holdings (owns Sears and Kmart)
• Totes Isotoner
• Tops
• True Religion Apparel
• Vince

The report, "US Retail and Apparel: B2/B3 Issuers Gain Spotlight As Distressed Retail and Apparel Ranks Grow," provides an overview of factors that impact companies at these rating levels. Click here to obtain the full report.

Some of these retailers, such as Sears and Kmart, have already announced store closings in Massachusetts. Earlier this year, Sears announced it would close 150 Kmart and Sears stores by the spring, part of a "difficult but necessary step as we take actions to strengthen the company’s operations and fund its transformation."

Story by Tom Davis

Photo by Mike Mozart via Flickr