topic Re: Neiman Marcus to File Bankruptcy in Community Chat

Neiman Marcus to File Bankruptcy

KingstonsMom — Sun, 19 Apr 2020 14:07:12 GMT

Neiman Marcus, one of the largest retailers of its kind in America, has hit the mat and can't get up in the wake of the coronavirus pandemic, and the chain is reportedly ready to file for bankruptcy.

Neiman's 43 stores all shut down during the self-quarantine, along with its Last Call stores and its 2, NYC Bergdorf Goodman department stores. The Dallas-based company is carrying nearly $5 billion in debt, and the payments alone are millions of dollars a month ... bottom line -- they just can't pay the bill ... this according to Reuters, which says the bankruptcy filing could only be days away.

It's not really hard to understand. Retailers who support brick and mortar stores need customers to come in and buy things, and there are none. That's why other big chains, such as J.C. Penney, Macy's and Nordstrom are all on the financial ropes.

In the case of Neiman's nearly all of it's employees -- 14,000 strong -- have been furloughed.

It's unclear what kind of protection Neiman's would be seeking in bankruptcy court, but these are clearly tough times.

Re: Neiman Marcus to File Bankruptcy

Scooby Doo — Sun, 19 Apr 2020 14:16:43 GMT

Probably just the first of several. JC Penney has been struggling anyway and this might be the nail in their coffin.

Re: Neiman Marcus to File Bankruptcy

Bhvbum — Sun, 19 Apr 2020 14:22:31 GMT

More than 9,300 stores are closing in 2019 as the retail apocalypse drags on —Business Insider:

The staggering rate of store closures that rocked the retail industry over the past couple of years continued in 2019, with retailers setting a new record for store closings over the last 12 months.

Retailers announced plans to close more than 9,300 stores in 2019, smashing the previous record of roughly 8,000 store closures in 2017, according to an analysis by Business Insider.

QVC is one retailer along with Amazon who started this trend years ago.

Re: Neiman Marcus to File Bankruptcy

gidgetgh — Sun, 19 Apr 2020 14:23:11 GMT

Reorg or full liquidation? Does anyone know?

Re: Neiman Marcus to File Bankruptcy

ValuSkr — Sun, 19 Apr 2020 14:25:07 GMT

If you have a Neiman-Marcus gift card, you'd better use it asap. Their website is still open for business.

Re: Neiman Marcus to File Bankruptcy

MorningLover — Sun, 19 Apr 2020 14:33:33 GMT

Here's another write up..

(Reuters) - Neiman Marcus Group is preparing to seek bankruptcy protection as soon as this week, becoming the first major U.S. department store operator to succumb to the economic fallout from the coronavirus outbreak, people familiar with the matter said.

The debt-laden Dallas-based company has been left with few options after the pandemic forced it to temporarily shut all 43 of its Neiman Marcus locations, roughly two dozen Last Call stores and its two Bergdorf Goodman stores in New York.

Neiman Marcus is in the final stages of negotiating a loan with its creditors totaling hundreds of millions of dollars, which would sustain some of its operations during bankruptcy proceedings, according to the sources. It has also furloughed many of its roughly 14,000 employees.

The bankruptcy filing could come within days, though the timing could slip, the sources said. Neiman Marcus skipped millions of dollars in debt payments last week, including one that only gave the company a few days to avoid a default.

Neiman Marcus’ borrowings total about $4.8 billion, according to credit ratings firm Standard & Poor’s. Some of this debt is the legacy of its $6 billion leveraged buyout in 2013 by its owners, private equity firm Ares Management Corp and Canada Pension Plan Investment Board (CPPIB).

Re: Neiman Marcus to File Bankruptcy

gidgetgh — Sun, 19 Apr 2020 14:38:42 GMT

@ValuSkr wrote:
If you have a Neiman-Marcus gift card, you'd better use it asap. Their website is still open for business.

@ValuSkr - I agree. I don't have one, but if I did, I would find something to buy today. Same with Macy's to be honest. If I had a gift card at Macy's, I would use it.

Re: Neiman Marcus to File Bankruptcy

Mz iMac — Sun, 19 Apr 2020 14:41:06 GMT

Re: Neiman Marcus to File Bankruptcy

kaydee50 — Sun, 19 Apr 2020 14:42:15 GMT

It will be a sad, sad day for me when (not if) Macy's goes out of business. But their real estate holdings have got to be worth a lot so hopefully it will survive for the foreseeable future.

Re: Neiman Marcus to File Bankruptcy

tiny 2 — Sun, 19 Apr 2020 14:45:04 GMT

@Mz iMac

Re: Neiman Marcus to File Bankruptcy

Spurt — Sun, 19 Apr 2020 15:11:43 GMT

Part of the problem wayyyyyyyy BEFORE the pandemic was the short sighted vision of CEOS, as was the case with JCP and their former Apple Exec who drove them to the brink (he was replaced)..... the changes Mr. Electronic "genius" made only further drove away in-store traffic.

And JCP like Macys and Nordstrom failed to update their technology and fell behind and failed to keep up with the changing trend of on-line shopping, and order online and pick up in store shopping......Instead their "solution" to limit stock in-store did was to discourage even less in-store traffic......

There's old threads out there with copies of articles and all the gory details.... So we will see if this pandemic is the final nail in the coffin for some of these retail companies....or whether someway, somehow they will hang on and manage to survive! .... Sad because it leaves customers with fewer retail choices, which in turn leads to higher prices....and of course fewer jobs....

Re: Neiman Marcus to File Bankruptcy

ellaphant — Sun, 19 Apr 2020 14:56:29 GMT

@kaydee50 wrote:
It will be a sad, sad day for me when (not if) Macy's goes out of business. But their real estate holdings have got to be worth a lot so hopefully it will survive for the foreseeable future.

I haven't been in Macy's in years. The last time I was the clothing was cheap, there was not a sales person to be seen and the store looked terrible. Never went back.

Re: Neiman Marcus to File Bankruptcy

sashamatthews — Sun, 19 Apr 2020 14:58:09 GMT

I am at my parents' house - they are both gone now - and down in the basement is a Neiman's metal boot rack. NM was our go-to store for so many things. This is very sad, but the world is changing.

Re: Neiman Marcus to File Bankruptcy

fthunt — Sun, 19 Apr 2020 14:59:30 GMT

If NM charged reasonable prices for just normal stuff - instead of trying to be the snobby rich people's shopping center - perhaps things would be different for them. I never check NM website when hunting for something. Just don't bother. Macy's is a close second.

Re: Neiman Marcus to File Bankruptcy

Spurt — Sun, 19 Apr 2020 15:10:12 GMT

@ellaphant wrote:
@kaydee50 wrote:
It will be a sad, sad day for me when (not if) Macy's goes out of business. But their real estate holdings have got to be worth a lot so hopefully it will survive for the foreseeable future.

I haven't been in Macy's in years. The last time I was the clothing was cheap, there was not a sales person to be seen and the store looked terrible. Never went back.

@ellaphant

From the Macy's stores I've visited around my town....they all seem to be poorly managed....Even the store in a very high end mall that still gets a lot of customers---the store looks nice up front but when you start to shop---there's clothes on the floor, the racks are so full you cant even browse through them....merchandise poorly organized, the dressing rooms are dirty....and the few personnel they have are on personal calls on their cell phones.... Where's the Management!!!!

I had a relative in the retail business she worked her way up from Department Manager to Store Manager and went on to work for a Boutique as a District Manager....Her stores always were tops in sales....she was constantly on the employees to properly merchandise and keep the store clean....she could buy from outside vendors rather than chosing to sell just the brands coporate office sent...it took a lot of work, but it seems few Managers these days want to put in the time..... And a poorly run store just makes shoppers stay home and easily check competitors prices and order online elsewhere...

Its funny because the top retailer still getting a lot of in-store traffic and an increase in in-store traffic (before the pandemic) were th TJ Maxx stores....even millenials like to shop there....good prices, nice variety of merchandise the stores are well organized and clean....

Re: Neiman Marcus to File Bankruptcy

Carol Diane — Sun, 19 Apr 2020 15:14:45 GMT

@fthunt , I love to shop at Neiman Marcus but I wouldn't really agree with you about high prices for "normal stuff". They don't really carry everyday things. I go there for items of high quality that are different, made very well, and not your run of the mill merchandise. I for one will be very sad if they go out of business. Unlike Macy's, you never have to hunt down someone to help you or a cashier to pay at. They take very good care of you.

Re: Neiman Marcus to File Bankruptcy

busymom22 — Sun, 19 Apr 2020 15:19:37 GMT

@Spurt wrote:
@ellaphant wrote:
@kaydee50 wrote:
It will be a sad, sad day for me when (not if) Macy's goes out of business. But their real estate holdings have got to be worth a lot so hopefully it will survive for the foreseeable future.

I haven't been in Macy's in years. The last time I was the clothing was cheap, there was not a sales person to be seen and the store looked terrible. Never went back.

@ellaphant

From the Macy's stores I've visited around my town....they all seem to be poorly managed....Even the store in a very high end mall that still gets a lot of customers---the store looks nice up front but when you start to shop---there's clothes on the floor, the racks are so full you cant even browse through them....merchandise poorly organized, the dressing rooms are dirty....and the few personnel they have are on personal calls on their cell phones.... Where's the Management!!!!

I had a relative in the retail business she worked her way up from Department Manager to Store Manager and went on to work for a Boutique as a District Manager....Her stores always were tops in sales....she was constantly on the employees to properly merchandise and keep the store clean....she could buy from outside vendors rather than chosing to sell just the brands coporate office sent...it took a lot of work, but it seems few Managers these days want to put in the time..... And a poorly run store just makes shoppers stay home and easily check competitors prices and order online elsewhere...

Its funny because the top retailer still getting a lot of in-store traffic and an increase in in-store traffic (before the pandemic) were th TJ Maxx stores....even millenials like to shop there....good prices, nice variety of merchandise the stores are well organized and clean....

I agree with you about Macy's. The last time I tried shopping there was a major frustration. People today aren't into spending a lot of time browsing because we all can narrow down our selections online. I went to their store to find a particular item I had seen online but their racks were so messy and disorganized I gave up.

They also haven't done well with their online shopping experience. Shipping is high but you can pick up your items free in store. I have done that several times and every time the service was slow, not to mention there's the hassle of having to find mall parking. One time they couldn't even find my order.

Younger generations now are used to Amazon with fast service. Stores like Macy's have to change if they are to survive.

Re: Neiman Marcus to File Bankruptcy

esmerelda — Sun, 19 Apr 2020 15:21:48 GMT

This mess can't be helpful to any retailers. At the end we'll have Walmart and amazon.

Bye bye independent retailers.

Re: Neiman Marcus to File Bankruptcy

DustRose — Sun, 19 Apr 2020 15:23:10 GMT

And so it begins

Re: Neiman Marcus to File Bankruptcy

queendiva — Sun, 19 Apr 2020 15:27:32 GMT

I hope Macy's can at least keep an on-line presence. I do not shop there often, but when I could not find what I needed elsewhere it seems they always came through, and at good prices, most memorable being my MOG dress a few years ago. I usually shopped there around and following the holidays.

Check out their site today. I picked up several clothing & accessory items yesterday at greast prices, including another MOG dress. They are recently engaged and I am fearful that I will be unable to find a dress if Macy's goes out of business.