DISTRESSED DAILY: Covid, Supply Constraints Trip Up Cole Haan

Supply-chain and other pandemic problems are tripping up shoemaker Cole Haan, prompting a downgrade.

S&P Global Ratings lowered its rating for parent company Calceus Acquisition Inc. to CCC+ from B-, along with a similar action on its senior secured term loan. The ratings company expects revenues to fall next year, following a steep drop during its 2021 fiscal year ended in May.

S&P forecast negative free cash flow over the next 12 months and leverage above 8x, “levels we deem may be unsustainable for the company’s capital structure,” the rater said in a recent report.

Though stores have largely ...