DISTRESS WATCH: Cautious Consumers Squeeze Debt-Laden Retailers

Distress among retailers has climbed to the highest level of the year as persistent inflation prompts consumers to scale back purchases.

The amount of debt issued by retailers in the consumer discretionary sector that’s trading at distressed prices has climbed $3.6 billion in the past two weeks to $20.9 billion, according to data compiled by Bloomberg News.

US crafts retailer Michaels led the increase as $2.8 billion of the company’s most-senior ranking bonds and loans fell in the past week. The crafts store chain told investors on an earnings call in September that households earning less than $100,000 are retrenching, ...