To do so, it may have to shutter a whole lot more outlets. The global retail think tank Coresight Research predicted one fifth of U.S. department stores -- about 1,150 -- will close between 2017 and 2023 no matter what they do. “The U.S. has far too many department stores,” said Deborah Weinswig, Coresight’s CEO. “In particular, it has far too many midmarket department stores that are competing in a similar, and highly challenged, space.”
A spokeswoman for J.C. Penney said that credit rating firms have maintained their highest liquidity rating for the retailer, and it has only $160 million of its more than $4 billion of debt coming due in the next four years.
Iconix Brand Group
Over the past four years, the owner of brands such as London Fog and Mossimo has endured a U.S. Securities and Exchange Commission accounting investigation, which isn’t over, and the departure of its founder as sales steadily slid. Now, Iconix has around $700 million of debt, including more than $100 million of busted convertible notes due 2023, which trade at about 44 cents on the dollar.
It’s even fighting with Jay-Z over his Rocawear brand, which it acquired in 2007. Eric Rosenthal, senior director of leveraged finance at Fitch Ratings, says the company is a “likely default” this year. Representatives for Iconix didn’t return requests for comment.
This article provided by Bloomberg News.