Moody’s Puts Baker & Taylor on Heightened Scrutiny26 Mar, 2009 By: Erik Gruenwedel
Baker & Taylor Acquisitions Corp. has been relegated by Moody’s Investors Services to list of companies considered likely to default or file for bankruptcy.
Moody’s said Charlotte, Va.-based Baker & Taylor, which has been a mainstay distributor of DVD movies and music CDs for decades, has become vulnerable due to retrenchment of entertainment retail coupled with the distributor’s significant debt and related interest payments.
It lowered Baker & Taylor default rating to B3, with a negative outlook.
Baker & Taylor, which is owned by private equity fund Castle Harlan Inc., has been involved with ongoing internal restructuring, which included the departure of Frank Wolbert, SVP of entertainment, last year.
A representative from Baker & Taylor was not immediately available for comment.