Neiman Marcus to file for bankruptcy

United States
Published:  20 April, 2020
Credit: Neiman Marcus

The Texas headquartered Group, which owns a chain of luxury department stores across the U.S., could file for bankruptcy amid the COVID-19 pandemic.

Due to the coronavirus spread, Neiman Marcus was forced to temporarily close down all 43 of its Neiman Marcus locations, about two dozen Last Call stores and its two Bergdorf Goodman stores in New York, furloughing several of its 14,000 employees. According to credit ratings firm Standard & Poor’s, the Group’s borrowings amount to about US$4.8 billion, with some of the debt as the legacy of its US$6 billion leveraged buyout in 2013 by its owners, private equity firm Ares Management Corp and Canada Pension Plan Investment Board (CPPIB). “In light of the significant headwinds stemming from the coronavirus pandemic and our expectation for a U.S. recession this year, we believe the company’s prospects for a turnaround are increasingly low”, said an analyst from Standard & Poor’s. Allegedly, Neiman Marcus has declined to comment.

Products range at the Neiman Marcus’ stores include high-end leather bags, footwear and accessories.

Sources: Voice of America/Reuters