Shares of Ascena Retail Group (ASNA) - Get Ascena Retail Group, Inc. Reportwere plummeting over 10% in Tuesday morning trading after the American retailer of women's clothing cut its full-year earnings guidance. Ascena is known for its brands including Ann Taylor, Dress Barn and Maurcies.

"These are the existential crises that we have been talking about in retail," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" Tuesday morning. "For Ascena, you are talking about a company that has every single one of its businesses in decline vs. what I thought."

Notable declines were seen at both Ann Taylor (-8.1%) and Maurcies (-7.1%) over the six-week holiday shopping period.

Cramer remarked the parallel between not only Ascena's woes but Limited's (LTD) closing over the past weekend, as being a treacherous situation for investors.

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"Now, Ascena does have a better balance sheet, and they can survive. But, I am just talking about this notion of what do you do with retailers that are just not strong enough? I am saying that with Ascena, I don't think is an investable situation," Cramer contended.

Cramer specifically noted that what is tarnishing the investment potential are the "dismal" level of comparable store sales. Comparable sales declined 4.4% for all of November-December.

"When I look at the numbers I said wow they missed again," Cramer said. "I think this is a very hard group to own, particularly apparel."