Neiman Marcus Reportedly Plans To File For Bankruptcy
Neiman Marcus Group is gearing up to file for bankruptcy.
According to The Daily Mail, the US retail giant is reportedly ready to file bankruptcy amid the COVD-19 pandemic after defaulting millions in bond payments last week and furloughing 14,000 employees. As Reuters reports, the company had a number of options after the virus spurred lockdowns that shuttered non-essential businesses, including all 43 of their stores.
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Apparently, the company is around $5billion in debt and is reportedly in the final stages of brokering a deal with its creditors, which could help keep some operations going during bankruptcy proceedings. A source told Reuters that the official bankrupt filing could happen in a matter of days.
If the clothing company decides to make this move, it would become the first major US department store to do so amidst the economic set backs from the coronavirus outbreak.
As many people are probably aware, a pandemic is a bad time to have a lot of debt, especially for businesses. As cash flow halts or stops completely, department store chains could eventually disappear. JCPenney also has debt around $4.2 billion and said it wasn’t going to make an interest payment last week.
Other retailers including Macy’s are negotiating to delay due dates for payments. Meanwhile Walmart, Target, and Costco are among the companies still paying vendors, according to Newser.com.
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