What Recovery? These Calif. Retailers On Verge Of Bankruptcy, New Moody’s Report Says

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By Stephen Frank 

On a national level, retailers are going belly up.  What about California?  We can tell it is already happening here.  So far this year, the State Controller is reporting that income and corporate tax revenues, along with sales tax revenues, are down by over $1 billion.  That shows the slowdown is hitting the State.  Sadly, the Democrat Legislature is continuing to spend more than last year—forcing the State into a deficit—along with the $1.5 trillion in debt and $1.4 trillion in unfunded liability for CalPERS.

“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. Fourteen of those have California 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.”

A majority?  That means many are NOT healthy.  Watch as the Jerry Brown game of magic unwinds and California enters into a distressed economic period.  We are on the cusp of a recession in California and Sacramento does not care.

Related Article: These Calif. Retailers On Verge Of Bankruptcy, New Moody’s Report Says

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

  • Charlotte Russe
  • Charming Charlie
  • Claire’s Stores
  • Cole Haan
  • David’s Bridal
  • Eddie Bauer
  • Gymboree
  • J. Crew
  • Kmart
  • Neiman Marcus
  • Nine West
  • Savers
  • Sears
  • True Religion Apparel”

Stephen Frank

Stephen Frank: Is the the publisher and editor of the California Political News and Views.  Mr. Frank speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows and is a full time political consultant. http://capoliticalnews.com/

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One Response to What Recovery? These Calif. Retailers On Verge Of Bankruptcy, New Moody’s Report Says

  1. William Hicks June 18, 2017 at 9:03 am

    The “Billion Dollar Question” is what happens when the marxist dream is finally out in the open as a nightmare?

    Will the left leaning majority democrat California see the light then? Or will the State just continue to circle down the drain? Will California be blessed with a governor that emulates Ronny and Donald as they pick up the pieces and put the State of California back again

    Reply

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