15 Illinois Retailers On The Verge Of Bankruptcy

The success of online retailers, like Amazon.com, has left brick-and-mortar stores struggling for years to try and keep up. And the ranks of distressed retailers is set to keep growing over the next 12 to 18 months. A newly released Moody's Investors Service report found 15 stores in Illinois are on the verge of bankruptcy and could be shuttered.

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. Fifteen of those have Illinois 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."

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

• Bon-Ton, which operates several Carson's stores in Illinois
• Charlotte Russe
• Charming Charlie
• Claire's Stores
• Cole Haan, which has outlet stores in Aurora and Rosemont
• David's Bridal
• Eddie Bauer
• Gymboree
• J. Crew
• Kmart
• Neiman Marcus
• Nine West
• Savers
• 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 factors that impact companies at these rating levels. Click here to obtain the full report.

Some of these retailers, such as Kmart, have already announced store closings in Illinois. 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."

By Tom Davis (Patch Staff)/Patch file photo by Renee Schiavone