Neiman Marcus, the luxury retailer is $4.3 billon dollars in debt and struggling to stay afloat. With the uncertainty of the economy, the large retailer is looking into bankruptcy options to help get out of debt.
To date, there have not been any formal decisions whether or not the debt riddled company will file for bankruptcy. However, people with knowledge have had talks about strategies to file bankruptcy and keep the retailer open. If the company chooses to file a Chapter 11 bankruptcy they can keep the company open and close stores that are not bringing in money. They will also be able to resturcture their debts.
Corona virus is playing a huge factor as to which way the company will go. If stores are able to open, Neiman Marcus may opt out of filing bankruptcy in the near future. While government officials have been telling people to stay home and shutting all nonessential businesses, retail stores have been suffering. Although, the coronavirus is impacting the retail business, Neiman Marcus was already struggling prior to the pandemic due to online retail therapy.
Neiman Marcus has 43 namesake locations, two Bergdoff goodman stores in New York, and 24 Last Call locations.