18 NYC Retailers That Are On Verge Of Bankruptcy

NEW YORK CITY – At least 18 brand name New York City stores are teetering on the edge of bankruptcy and could be headed towards closure, according to a newly released Moody's Investors Services report.

Nationally, 22 retailers were ranked with a debt rating of Caa or lower – the lowest rank on Moody's credit rating spectrum that puts them in serious risk of bankruptcy.

Of them, 18 have branches in the city.

"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."

Though most of the New York City stores are nationally-recognized brand names, Fairway Market – the beloved grocery store – features on the list.

Some of these retailers, such as Sears, have already announced store closings in New York. 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."

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Here is the list of retailers with stores in New York City that are on the verge of bankruptcy:

• Boardriders S.A.
• Bon-Ton
• Charlotte Russe
• Charming Charlie
• Claire's Stores
• Cole Haan
• David's Bridal
• Eddie Bauer
• Fairway Market
• Gymboree
• J. Crew
• Kmart
• Neiman Marcus
• 99 Cents Only Store
• Nine West
• Sears
• Tom's Shoes
• True Religion apparel

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.

Lead photo by Adam Kuban/Flickr

Original story by Tom Davis, Patch Staff