A Neiman Marcus bankruptcy may be on the way for the luxury retailer.
According to recent reports, the company is currently in talks with lenders about a Neiman Marcus bankruptcy. The reason given is it struggling to deal with debts, as well as the financial suffering caused by the coronavirus from China.
The goal of a Neiman Marcus bankruptcy would be for the company to reduce its debt while continuing to operate its business. As it stands now, the company is saddled with $4.3 billion in debt. These troubles stem from its sale to Ares Management and the Canada Pension Plan Investment Board in 2013, reports New York Post.
The Neiman Marcus bankruptcy news comes as the company
grapples with its stores remaining closed due to coronavirus. However, the retailer is still offering its goods via its online store. The current goal is to reopen stores in April, but that may change with the growing danger of the virus.
Here’s what a company spokesman told New York Post when asked about the possible Neiman Marcus bankruptcy.
“We are evaluating all courses of action to preserve our financial strength so that we may continue serving our customers and associates, and being a great partner to luxury brands globally. Our priority has been and will always be to ensure stability for our associates and brand partners.”
With coronavirus closing up many shops, Neiman Marcus may not be the only retailer in hot water this year.
As of this writing, William White did not hold a position in any of the aforementioned securities.
