Neiman Marcus on the brink of bankruptcy
Neiman Marcus is in talks with lenders about filing for Chapter 11 bankruptcy, per Bloomberg. The Dallas-based luxury retailer is struggling under the weight of $4.3 billion in debt, related to its 2013 takeover by Ares Management and Canada Pension Plan Investment Board.
Why it matters: Neiman Marcus is an anchor tenant to many shopping malls that were already struggling before the coronavirus pandemic.
The bottom line:
"Neiman Marcus temporarily closed its stores last week in response to the health crisis. It manages 43 namesake stores across the U.S., two Bergdorf Goodman stores in Manhattan, 24 Last Call locations and one Mytheresa in Germany. Like other retailers, Neiman Marcus is bracing for a slump tied to the closures. The company said it will continue to serve its customers through online channels, including a new selling and styling tool designed to help remote purchasing."— Gillian Tan & Katherine Doherty, Bloomberg