Monday 20 April 2020

It Begins: Neiman Marcus to File for Bankruptcy As Early as this Week After Government’s Lockdown Orders

Neiman Marcus is the frist major US department store to go bankrupt due to government forced shutdowns of its 43 locations.
Many of 14,000 employees were furloughed weeks ago.
The Neiman Marcus Group also has two dozen Last Call stores and two Bergdorf Goodman stores in New York.
Reuters reported:
Neiman Marcus Group is preparing to seek bankruptcy protection as soon as this week, becoming the first major U.S. department store operator to succumb to the economic fallout from the coronavirus outbreak, people familiar with the matter said.
The debt-laden Dallas-based company has been left with few options after the pandemic forced it to temporarily shut all 43 of its Neiman Marcus locations, roughly two dozen Last Call stores and its two Bergdorf Goodman stores in New York.
Neiman Marcus is in the final stages of negotiating a loan with its creditors totaling hundreds of millions of dollars, which would sustain some of its operations during bankruptcy proceedings, according to the sources. It has also furloughed many of its roughly 14,000 employees.

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