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Bloomberg
Neiman Marcus Group Inc, the luxury retailer that’s been struggling to ease its $4.3 billion debt load, is talking with lenders about filing for bankruptcy, according to people with knowledge of the matter.
No formal decisions have been made, but Neiman Marcus has held initial talks with lenders about a potential bankruptcy loan that would keep the company running while it works out a recovery plan, the people said. They asked not to be identified discussing a private matter.
A representative for Dallas-based Neiman Marcus declined to comment. A Chapter 11 bankruptcy filing would allow the company to keep its doors open, cut its borrowings and close weak stores to minimise costs.
The situation remains fluid and plans could change, depending on market conditions, the people said. This includes the impact of the coronavirus, with sales suffering because government officials are telling shoppers to stay home and nonessential businesses to stay shut.
Neiman Marcus temporarily closed its stores last week in response to the health crisis. It manages 43 namesake stores across the US, two Bergdorf Goodman stores in Manhattan, 24 Last Call locations and one Mytheresa in Germany.
Even before the virus spread, the company was struggling because shoppers were defecting to online merchants and consumer tastes were changing. Like other retailers, Neiman Marcus is bracing for a slump tied to the closures. The company said it will continue to serve its customers through online channels, including a new selling and styling tool designed to help remote purchasing.