Retail and Fashion Companies With ‘Junk’ Credit Ratings

Belk Inc.’s plan to restructure its debt with the help of a Chapter 11 filing was another reminder of just how hard the coronavirus has hit fashion’s finances. The company’s credit rating — at Caa1 in the reckoning of Moody’s Investors Service — was a warning sign that the department store was on the edge. But there are plenty of other firms borrowing in the mid to lower reaches of the speculative or so-called “junk” debt market. Here, the standings according to Moody’s.

Company (Affiliation)

Long-term Rating

Outlook

Definition

Jill Acquisition (J. Jill)

Caa2

Stable

Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk.

Boardriders Inc. (Quiksilver, DC, Roxy)

Caa1

Negative

Premier Brands Group Holdings (Nine West, Jones New York)

Caa1

Negative

Belk Inc.

Caa1

Negative

Talbots Inc.

B3

Negative

Obligations rated B are considered speculative and are subject to high credit risk.

Fossil Group Inc.

B2

Negative

ABG Intermediate Holdings 2 LLC (Authentic Brands Group)

B2

Stable

L Brands Inc.

B2

Positive

Calceus Acquisition Inc. (Cole Haan)

B2

Negative

Caleres Inc.

B1

Negative

Academy

B1

Stable