Neiman Marcus in talks about possible bankruptcy: report

National /
Mar.March 26, 2020 12:00 PM
The lifeline would allow the company to continue operating while it puts together a recovery plan. (Photo by Noam Galai/Getty Images)

The lifeline would allow the company to continue operating while it puts together a recovery plan. (Photo by Noam Galai/Getty Images)

Luxury retailer Neiman Marcus Group is reportedly considering filing for bankruptcy as it struggles with $4.3 billion in debt.

No plan has been finalized, but Neiman Marcus has held discussions with lenders about a possible bankruptcy loan, according to Bloomberg.

The lifeline would allow the company to continue operating while it puts together a recovery plan.

The situation could change, sources familiar with the matter told Bloomberg. It will depend on the market conditions and the fallout from the coronavirus, which prompted Neiman Marcus to close its stores last week.

Before the pandemic, the retailer was already struggling to maintain its footing in the market as shoppers increasingly moved away from storefronts in favor of online offerings.

If plans for bankruptcy move forward, it will join several other retailers that have filed for bankruptcy in the past year, including Forever 21 and Modell’s Sporting Goods. A trio of investors acquired Forever 21 for $81 million in a deal that was approved by a bankruptcy court judge in mid-February.

Last September, Neiman Marcus closed on a nearly $27 million loan for its Fort Lauderdale location, after securing a $37 million loan from Credit Suisse for its Shops at Merrick Park location in July. [Bloomberg] — Sylvia Varnham O’Regan


Related Articles

arrow_forward_ios
Fritz Kaegi

Higher tax bills cometh for commercial landlords in south, west suburbs

Higher tax bills cometh for commercial landlords in south, west suburbs
66 Orland Square with GW Properties CEO Mitch Goltz and BlitzLake Partners CEO David Blitz (Google Maps)

Facing foreclosure, GW Properties hands over Orland Park shopping center

Facing foreclosure, GW Properties hands over Orland Park shopping center
Mayor Lori Lightfoot and a restaurant in downtown Chicago (Getty)

Chicago to ease capacity limits, open bars

Chicago to ease capacity limits, open bars
The former Target in Calumet City will be converted into a working farm (Google Maps)

For latest retail redevelopment, old Target will become new farm

For latest retail redevelopment, old Target will become new farm
The Chicago Loop’s retail vacancy rate could eclipse 20% this year, by some estimates (Photo by Interim Archives/Getty Images)

“There’s going to be pain, and people are going to get hurt”: Chicago retail’s ugly future

“There’s going to be pain, and people are going to get hurt”: Chicago retail’s ugly future
Governor of Illinois J. B. Pritzker (Credit: Joshua Lott/Getty Images)

State offers lifeline to devastated hospitality industry

State offers lifeline to devastated hospitality industry
Illinois Gov. J.B. Pritzker with Jimmy Choo and Disney in Magnificent Mile (Credit: Lt. Col. Bradford Leighton via Wikipedia Commons, Google Maps)

Protected with plywood: Retailers board up shops along Mag Mile

Protected with plywood: Retailers board up shops along Mag Mile
Governor J.B. Pritzker (Credit: Joshua Lott/Getty Images)

Chicago’s gyms, movie theaters, bowling alleys prepare for severe restrictions

Chicago’s gyms, movie theaters, bowling alleys prepare for severe restrictions
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...