Making it the first major retailer to go under amid the coronavirus crisis, Neiman Marcus is set to file for bankruptcy this week, according to sources who spoke to Reuters..
Reuters reports: “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.”
JC Penney is also mulling a bankruptcy filing, Business Insider reported this week: “Macy’s also furloughed all of its employees and is reportedly teaming up with a financial consultancy to consider options, while CEO Jeff Gennette is foregoing his salary. Like JCPenney, Macy’s has also faced a difficult past few years.”