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Why More Retailers Could Default in 2016

  • Growing number of merchants expected to quit paying debts
  • Nine West, J. Crew, 99 Cents debt fell the most last year
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Retailers Feel the Pain From Holiday Sales Returns

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Last year was grim for retailers. This year could be even worse. 

Despite a late surge in holiday sales, companies like J. Crew Group Inc. and 99 Cents Only Stores are struggling under debt they took on in leveraged buyouts years ago. Their bond prices have plummeted -- in some cases to as little as 25 cents on the dollar -- as investors brace for possible defaults.