These Tennessee Retailers Are On The Verge Of Bankruptcy, Moody's Says

The ranks of distressed retailers is set to keep growing over the next 12 to 18 months, and 14 that have stores in Tennessee, are on the verge of bankruptcy and could be subject to closure, according to a newly released Moody's Investors Service report.

Moody's reported 22 national retailers had debt ratings of Caa or lower — which is higher than the number of bankrupt-leaning retailers during the Great Recession. Debt rated Caa or below is the lowest rank on Moody's credit rating spectrum. (For more updates on this story and free news alerts for your neighborhood, sign up for your local Middle Tennessee Patch morning newsletter.)

"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."

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

• Charlotte Russe
• Charming Charlie
• Claire's Stores
• Cole Haan
• David's Bridal
• Eddie Bauer
• Gymboree
• J. Crew
• Kmart
• Nine West
• Quiksilver
• Sears
• True Religion Apparel

The report, "US Retail and Apparel: B2/B3 Issuers Gain Spotlight As Distressed Retail and Apparel Ranks Grow," provides an overview of the factors faced by companies at these rating levels. Some of these retailers, such as Sears and Kmart, have already announced store closings in the Volunteer State.

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."

— Reporting by Patch Editors Tom Davis and Deb Belt

Patch file photo