Rating agencies aren't quick to rate a company's debt as "junk." Things have to be very, very bad for them to do this. These agencies have access to a company's true state of affairs, which in no way resembles the happy talk employees are fed.
Some may think this means Macy's will be taken over by a bigger player. Here's why this is highly unlikely.
Macy's just received the official kiss of death. The company will find it hard, if not impossible to raise capital, and if it does, it will be under very predatory terms which at best will allow the execs their golden parachute at the expense of employees and shareholders.
When things get this bad, there's very few lifeboats on the Titanic and you can bet your life none are reserved for peon workers. So, don't delude yourself into thinking some white knight company is going to swoop in and save your job.
It won't happen. Maybe, and I mean MAYBE, someone might be willing to buy the brand, apart from all the baggage such as debt, building leases, and employees. Any potential investor would be looking at what he can pick off the carcass and turn a profit with easily, which sure doesn't mean thousands of employees and/or high priced leases in the brick and mortar retail graveyard.
Most likely, everyone will stand clear and wide of the train wreck known as Macy's and let the dust settle before sifting through the wreckage for anything of value. Like vultures circling a dying animal overhead, they know it's much easier and safer to swoop in after it dies than fight it to the death while it's alive.
Macy's may be the new "Sears" but Sears went down while retail was still doing somewhat ok. Today, retail is crashing hard, which will make Macy's fall much faster than Sears's fall was. It is unlikely you have years like many Sears employees did.
More like 6-12 months for those whose store doesn't close right now.