Retailers across the country are working diligently to ensure that their businesses aren't the next victim of the coronavirus. The e-commerce revolution might have brought the industry to its knees, but it seems like COVID-19 is ready to deal the final blow - bankruptcy - to several retail stocks.On April 24, reports surfaced that Neiman Marcus could be filing for Chapter 11 bankruptcy at any moment. The department store, which reportedly was in talks with lenders to obtain $600 million in emergency funding to ensure it gets through bankruptcy proceeds, was suffering under $4 billion in debt long before the coronavirus exerted its pressure on the industry.However, not everyone is keen on the department store to file. Mudrick Capital Management LP has gone so far as providing Neiman Marcus with a proposal to supply $700 million in debtor-in-possession financing. However, its funding comes with a stipulation that Neiman Marcus must find a buyer. That's no easy task, given that all 43 of its stores have been closed since March 17, and the retailer has had to furlough more than 14,000 employees. Few buyers want to take on that kind of responsibility.Neiman Marcus is hardly alone in its struggles.Here, we look at 10 retail stocks that find themselves in considerable peril thanks to the coronavirus' toll on the industry. In some cases, the companies have already been linked to potential bankruptcy filings. In others, credit ratings agencies have reported serious concerns about these companies' debt. And in still others, their financial positions are signaling danger via an ominous "Altman Z-score," a metric measuring a company's credit strength to determine the likelihood of bankruptcy. (More on how that works in a minute.)None of this is a guarantee that any of these companies will indeed go bankrupt - lesser companies have been saved from worse, whether it's on their own merits or through plans like the one proposed by Mudrick Capital. However, each of these retail stocks is extremely distressed thanks to the COVID-19 threat and face a heightened risk of bankruptcy or other drastic measures as a result. For that reason, investors should keep their distance. SEE ALSO: 23 Dividend Cuts and Suspensions Chalked Up to the Coronavirus
Plus-size women’s apparel retailer Lane Bryant is boosting its inclusivity efforts with store mannequins featuring a variety of skin tones that the brand says reflect its ethnically diverse consumer base. The full-body, size 14 mannequins will initially roll out in the brand’s new Columbus, Ohio, flagship store in Easton Gateway. Lexy Onofrio, vice president of creative and brand marketing, said the Lane Bryant client was “top of mind at all points” in creating the new store design.
Gap Inc. , which owns the Gap, Banana Republic and Old Navy retail chains, and Ascena Retail Group Inc. , which operates Ann Taylor and other stores, announced plans Monday to furlough employees amid the spread of COVID-19. Gap announced that it would "furlough the majority of its store teams in the United States and Canada, pausing pay but continuing to offer applicable benefits until stores are able to reopen," along with laying off corporate workers and cutting executive salaries. Gap previously announced that stores would be closed till April 1, but extended that indefinitely Monday. "After taking the extraordinary measures of temporarily closing all of our company-owned stores in North America and Europe two weeks ago, we are now in a position where we must take deeper actions, new Gap Chief Executive Sonia Syngal said in Monday's announcement. "Each decision, however difficult, has been made to ensure that we build toward a future where Gap Inc. can come out of this stronger -- for our customers, our shareholders and, most importantly, our teams." Gap had 129,000 employees as of the end of January, according to regulatory filings. Ascena, which closed down its Dressbarn chain late last year amid struggles, said it would furlough all of its retail employees and half its corporate staff, and cut executive salaries in half. Distribution centers will remain open and operate at limited capacity, the company announced. Ascena had 53,000 employees as of Aug. 3, 2019.
NEW YORK, NY / ACCESSWIRE / March 9, 2020 / Ascena Retail Group, Inc. (ASNA) will be discussing their earnings results in their 2020 Second Quarter Earnings call to be held on March 9, 2020 at 4:30 PM ...
Justice employees will be furloughed as part of a larger move by the tween company's parent group.
The default rate among retailers could rise to 19% by the end of the year, according to Fitch Ratings, and that probably will lead to more filings.
Neiman Marcus has filed for bankruptcy in a restructuring that will transfer majority ownership of the retailer to its creditors.
"We were disappointed in our results and we are working aggressively to refine and rebalance these assortments in order to improve our performance."
MAHWAH, N.J., March 09, 2020 -- ascena retail group, inc. (Nasdaq - ASNA) (“ascena” or the “Company”) today reported financial results for its fiscal second quarter ended.
As previously stated publicly, the ascena Board and management team continue to take proactive actions designed to optimize the Company’s balance sheet. The Company remains in full compliance with all of its obligations under its financing agreements and intends to remain so. The debt repurchases are associated with the Company’s balance sheet optimization efforts.
Q2 2020 Ascena Retail Group Inc Earnings Call
The U.S. continued to lead the world in number of cases of COVID-19 on Tuesday, as state governors continued to complain about inadequate testing and predict that the worst is yet to come.
The speculative-grade liquidity rating was downgraded to SGL-3 from SGL-2 and the outlook remains negative. The CFR, PDR and term loan downgrades reflect Moody's view that Ascena faces a heightened probability of default, due to its high leverage and significant expected earnings declines driven by COVID-19-related temporary store closures, weak consumer spending and intense promotional activity.
Lane Bryant is thrilled to announce the Brand has co-designed a second collection with fashion and lifestyle influencer Rochelle Johnson, the creative force and founder of Beauticurve. Beauticurve x Lane Bryant will debut in two phases: five pieces are shoppable in stores and online today, while a capsule of 11 online exclusive items will be available on March 9.
MAHWAH, N.J., March 17, 2020 -- ascena retail group, inc. (Nasdaq: ASNA) (“ascena” or the “Company”) today provided a business update on COVID-19. Store Closures In response.
Under the tax benefits preservation plan, the Company will issue a dividend of one right for each share of its common stock held by stockholders of record as of the close of business on June 5, 2020. The plan is designed to protect stockholder value by mitigating the likelihood of an “ownership change” that would result in significant limitations on the Company’s ability to use its net operating losses or other tax attributes to offset future income.
MAHWAH, N.J., March 02, 2020 -- ascena retail group, inc. (Nasdaq - ASNA) (the “Company” or “ascena”) today announces the release of its Fiscal 2020 second quarter financial.
Moody's Investors Service ("Moody's") has affirmed Brixmor Property Group Inc.'s ratings, including the Baa3 issuer and unsecured debt ratings of its operating partnership, Brixmor Operating Partnership L.P. In the same rating action, Moody's also changed the rating outlook to stable from positive. The rating affirmation reflects Brixmor's solid credit profile, including its consistently strong operating performance and good liquidity with no debt maturities until 2022.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Ascena Retail Group, Inc. New York, May 18, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Ascena Retail Group, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Due to the uncertain environment, the Company made the extremely difficult decision to implement a furlough program across its business, including all store associates and close to half of its corporate associates. During this time, furloughed associates who are participating in any of the Company’s medical benefit plans will keep those benefits. In addition to the furlough program, the Company announced temporary reductions in the base salaries of all corporate associates above a certain salary beginning this week.