Report: 14 Chains With Stores in Wisconsin On Verge of Bankruptcy

MILWAUKEE, WI — 2017 has already been marked by a number of retail bankruptcies with stores in Wisconsin, including Gander Mountain, Gymboree and Radio Shack but more be on the way.

According to a newly-released report by Moody's, the ranks of distressed retailers is set to keep growing over the next 12 to 18 months.

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.

"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 Wisconsin that are on the verge of bankruptcy:

• Bon Ton
• Cole Haan
• Charlote Russe
• Charming Charlie
• J Crew
• Claire's
• David's Bridal
• Eddie Bauer
• Savers
• Gymboree
• 99 Cents Only
• Nine West
• Sears
• True Religion

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. Follow a Money Magazine article that profiles 22 national retailers teetering on the edge.

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."
Retailers who said they were closing stores in this year include Bebe, Radio Shack, HHGregg and The Limited.

Reporting by Patch Editor Tom Davis
Patch file photo