Macy's dodges bankruptcy by securing $4.5 billion in financing
Macy’s secured around $4.5 billion in financing, including $3.15 billion pledged against its real estate assets.
Why it matters: This should remove the iconic retailer from bankruptcy watch lists, even if 2020 holiday sales are sluggish.
The big picture: Investor's reactions were not so great, after weeks of growth. Macy's did release preliminary fiscal Q1 numbers that met consensus estimates on the top line and beat them on the bottom line, but now it's more leveraged and warned that sales might not normalize until 2022.
The bottom line: "The retailer, which temporarily shut all its stores in response to local lockdown orders aimed at curbing the spread of the novel coronavirus, was struggling even before the beginning of the pandemic amid changing shopping habits." — Nina Trentmann, WSJ