By  on June 7, 2017

Charlotte Russe, Lands’ End and FullBeauty Brands are among the firms listed as having a “negative” outlook that could contribute to the growth in the ranks of distressed retailers over the next 12 to 18 months, according to Moody’s Investor Service.

The ratings firm attributes the growth in distressed firms to the secular shift in the industry, and expects more defaults in the months ahead. The company said the credit erosion in the sector is “crystalizing at a rapid pace as more issuers filed for bankruptcy.” It also expects that as the department store and specialty retail sectors continue to deteriorate, the distressed retail ranks will keep growing. But while distressed issuers are back at Great Recession levels, Moody’s found that the majority of its rated company universe “remains sound.”

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