Beauty Packaging Staff04.20.20
According to Reuters, Neiman Marcus Group is preparing to seek bankruptcy protection, making it the first major US department store operator to succumb to the economic fallout from the coronavirus crisis.
The bankruptcy filing could come as soon as this week, although the timing may change, Reuters claims. Neiman Marcus allegedly skipped millions of dollars in debt payments last week, including one that only gave the company a few days to avoid a default. The company’s borrowings total about $4.8 billion, according to credit ratings firm Standard & Poor’s.
The company was left with few options after the pandemic forced it to temporarily close all Neiman Marcus, Bergdorf Goodman and Last Call stores on March 17.
Reuters says that 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. The company has also furloughed many of its roughly 14,000 employees.
With most beauty retailers still shut down, Neiman Marcus is the first to fall, but it may not be the last.
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Last week, Saks announced plans to reopen at least some of its stores, including its flagship in Manhattan, by June 1.
The bankruptcy filing could come as soon as this week, although the timing may change, Reuters claims. Neiman Marcus allegedly skipped millions of dollars in debt payments last week, including one that only gave the company a few days to avoid a default. The company’s borrowings total about $4.8 billion, according to credit ratings firm Standard & Poor’s.
The company was left with few options after the pandemic forced it to temporarily close all Neiman Marcus, Bergdorf Goodman and Last Call stores on March 17.
Reuters says that 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. The company has also furloughed many of its roughly 14,000 employees.
With most beauty retailers still shut down, Neiman Marcus is the first to fall, but it may not be the last.
Other Retail News
Last week, Saks announced plans to reopen at least some of its stores, including its flagship in Manhattan, by June 1.
