Apr 19, 2020 - Economy & Business

Report: Neiman Marcus to file for bankruptcy

Photo: Bruce Bennett/Getty Images

Neiman Marcus Group is set to file for bankruptcy as soon as this week, Reuters reports, citing people familiar with the matter.

Why it matters: It would be the first major department store chain to fall victim to the coronavirus economy. Neiman Marcus is also an anchor tenant to many shopping malls that were already struggling before the coronavirus pandemic.

  • Social distancing restrictions have forced the company to temporarily shutter its 43 Neiman Marcus locations, about two dozen Last Call stores and its two Bergdorf Goodman stores.
  • The group has furloughed most of its roughly 14,000 employees. It's also fallen behind on debt payments, having "skipped millions of dollars in debt payments last week, including one that only gave the company a few days to avoid a default," Reuters notes.

What to watch: The company is in the final stages of negotiating a loan totaling hundreds of millions of dollars to continue its operations during bankruptcy proceedings, according to Reuters.

Go deeper

The risk asset rally continues as stock market rebounds

Illustration: Sarah Grillo/Axios

Risk assets have jumped over the past week and continued their rally on Wednesday, with the S&P 500 gaining for a fourth straight day and posting its highest close since March 4, while the Nasdaq ended the day just 1.4% below its all-time high.

What it means: If it hadn't been evident before, Wednesday's market action made clear that the bulls are back in charge.

Trump's troubles grow, spread

Photo: Tasos Katopodis/Getty Images

President Trump is confronting the most dire political environment of his presidency, with his support dropping fast from Texas to Wisconsin, even among his base of religious and older voters. 

Why it matters: Top Republicans tell Axios that Trump's handling of the nation's civil unrest, including his hasty photo op at St. John's Church after the violent clearing of Lafayette Park, make them much more worried about his chance of re-election than they were one week ago.

Social media takes on world leaders

Illustration: Aïda Amer/Axios

Social media companies are finally beginning to take action on posts from world leaders that violate their policies, after years of letting them mostly say whatever they wanted unfiltered to millions of people.

Why it matters: Government officials are among the users most likely to abuse the wide reach and minimal regulation of tech platforms. Mounting pressure to stop harmful content from spreading amid the coronavirus pandemic, racial protests and a looming U.S. election has spurred some companies to finally do something about it.