What to watch: A distressed retailers list

We've compiled lists of distressed companies that we're keeping a close eye on, defined as CCC+ or Caa1 and below, which indicates a high level of default risk with a low margin of safety, from the top rating agencies.

The big picture: Many of the companies on this list — ranging in sectors from home, pet, beauty and restaurants — have been hit by a pullback in consumer discretionary spending.

Zoom in: Higher mortgage rates and rent have hit the home products sector, where consumers are tightening their wallets, while some beauty brands are having trouble balancing growth with debt.

• The rise of consumers seeking experiences and dining out has also ebbed, with nearly three-quarters of consumers saying they'll reduce how often they'll dine out, per an AlixPartners report.
• More than 50% say they'll order less takeout and 42% say they'll do less delivery.