Neiman Marcus closes in on bankruptcy filing

Following weeks of discussions, luxury retail chain Neiman Marcus is gearing up for a bankruptcy filing as soon as Wednesday, the Wall Street Journal reported.

The retailer, whose stores are currently closed due to the coronavirus epidemic, hopes to restructure its massive $4.7 billion debt load and reopen most stores after the crisis. Neiman’s interest payments due in April total $120 million, and the firm missed one payment last week.

The company is near a debtor-in-possession financing agreement with existing lenders, a source told the Journal. The lenders are considering an outright sale of the company, or shutting down some of its 43 department stores.

Hudson’s Bay Company, the parent company of Saks Fifth Avenue, has emerged as a potential buyer. Saks has attempted to acquire Neiman three times in the past decade without success.

Retail chains have been facing pressure from e-commerce for years prior to the coronavirus crisis, and major brands like Forever 21 and Barneys filed for bankruptcy last year.

In a big bet on New York City’s up-and-coming Far West Side, Neiman Marcus opened its first store in the Big Apple last year, serving as the anchor tenant for the mall at the Related Companies’ Hudson Yards megadevelopment. [WSJ] — Kevin Sun