I can comment on Macy’s, as I have followed the company. The claim that Macy’s is a zombie company is incorrect. The company has generated positive cash flow throughout the pandemic, and net debt has decreased every quarter, even though all department stores were closed for three months in spring 2020. The company recently voluntarily repaid a $1.3 billion loan (representing about 27% of the company’s interest-bearing debt) with cash generated from operations. Macy’s lost its investment-grade credit rating when the pandemic escalated, but management believes it will be regained by the end of this year. Macy’s weighted average interest rate on its debts at the turn of the year was about 5.6%, while the federal ten-year debt interest rate was 1.55%.
I think it’s a rather encouraging sign of business quality that net debt decreases by -22.2% without an equity offering while the company goes through the worst crisis in its history.
Welcome to discuss more in the Macy’s thread.