RETAILER            REASON

 

Bon-Ton Stores    Declining same-store sales and operating margins hurt ability to invest in technology and real estate.

 

Claire’s Stores      High-yield bonds; difficult mall traffic trends, and economic headwinds in Europe.

 

J. Crew                   Leveraged debt structure; increased competition from fast fashion

 

Sears Holdings     High-yield bonds; institutional term loans; cash-burn rate; lack of clear catalyst for profit improvement

 

Nine West              High-yield bonds; institutional term loans; fashion miscues, and poor trends in women’s denim.

 

99 Cents                 High-yield bonds; institutional term loans

 

Rue 21                      High-yield bonds; institutional term loans

 

True Religion        Institutional term loans; adverse denim trends

 

 

** Data from Fitch Ratings and Moody’s Investors Service

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