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Honored Contributor
Posts: 17,859
Registered: ‎03-09-2010

Neiman Marcus to File Bankruptcy

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.

You never know how strong you are until being strong is the only choice you have.
Respected Contributor
Posts: 2,294
Registered: ‎03-14-2010

Re: Neiman Marcus to File Bankruptcy

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

Respected Contributor
Posts: 2,322
Registered: ‎07-18-2010

Re: Neiman Marcus to File Bankruptcy

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.

 

Honored Contributor
Posts: 10,385
Registered: ‎03-09-2010

Re: Neiman Marcus to File Bankruptcy

Reorg or full liquidation?  Does anyone know?


Why is it, when I have a 50/50 guess at something, I'm always 100% wrong?
Honored Contributor
Posts: 11,456
Registered: ‎03-15-2014

Re: Neiman Marcus to File Bankruptcy

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

Respected Contributor
Posts: 3,598
Registered: ‎10-04-2015

Re: Neiman Marcus to File Bankruptcy

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).

 

 

Honored Contributor
Posts: 10,385
Registered: ‎03-09-2010

Re: Neiman Marcus to File Bankruptcy


@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.


Why is it, when I have a 50/50 guess at something, I'm always 100% wrong?
Honored Contributor
Posts: 14,693
Registered: ‎07-26-2014

Re: Neiman Marcus to File Bankruptcy

Oh My god!!!.gif

"Never argue with a fool. Onlookers may not be able to tell the difference."


220-AuCC-US-CRM-Header-Update.gif

Esteemed Contributor
Posts: 5,425
Registered: ‎02-07-2011

Re: Neiman Marcus to File Bankruptcy

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.

 

 

Respected Contributor
Posts: 2,125
Registered: ‎03-10-2010

Re: Neiman Marcus to File Bankruptcy