News of store closures has almost become the new normal. 100 doors here. 68 doors there. Plus, the bankruptcy of the week.
But Moody’s Investor Services says there’s nothing normal about it—unless your point of reference is the 2008-09 recession. Because that’s the last time the percent of retailers and apparel companies in distress rose this high.
“Moody’s-rated US retailers rated Caa or Ca today make up just over 13% of our total rated retail portfolio, which is the highest level since the Great Recession, when this group comprised 16% of the portfolio,” said Moody’s Vice President Charlie O’Shea. “And the increase comes at the same time as the broader universe of Caa rated companies is likewise growing.”
Read more at Sourcing Journal.