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Neiman Marcus Department Stores Preparing to Declare Bankruptcy



The owner of a chain of luxury American department stores Neiman Marcus can file for bankruptcy as early as this week.
Neiman Marcus

The Neiman Marcus Group is among the "old-timers" of the American market. This retailer from Dallas, Texas, began its activities back in 1907 with the opening of the first department store that sold clothing. For a long time, the company was doing the best; its stores opened in many cities of the country. However, the last couple of decades have not been the best times for the company, continually experiencing financial difficulties. And it seems that the obstacle in the form of the coronavirus epidemic, which forced the suspension of 43 stores, was the last straw.

In addition to Neiman Marcus department stores, the retailer closed down the Last Call and Bergdorf Goodman, also specializing in luxury goods. As a result, the company's debt is already 4.8 billion dollars, and monthly payments are in the millions. Reuters reports that the retailer refrained from making some debt payments last week. Some of its 14,000 employees have received wage cuts, and some have been sent on leave without pay. The company is now preparing all the necessary documents and negotiating with creditors.

It is reported that the company may file for bankruptcy as soon as possible. And if this happens, Neiman Marcus will be the first major U.S. chain of department stores that has not withstood the consequences of the epidemic and the economic difficulties associated with it. Other well-known chains such as Macy's, Nordstrom and JC Penney Co. The latter is also considering bankruptcy proceedings.

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