Standard & Poor's Ratings Services has complete its review of the recovery and issue-level ratings on Hudson, Ohio-based Jo-Ann Stores Inc.'s term loan and senior unsecured notes. All ratings are unchanged. Our recovery analysis incorporates a simulated default scenario that contemplates a default in 2015, due to ineffective management of inventory and merchandising missteps, as well as a slowdown in consumer spending, which results in a steep decline in demand for fabric and craft products. We believe the company would be able to reorganize in the event of a default because of its market position in the highly fragmented craft and hobby retail industry. JoAnn's capital structure consists of a $375 million asset-based revolving (ABL) credit facility due 2016 (unrated),...
Companies mentioned in this report are:
- Jo-Ann Stores Inc.
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