Mar 24, 2020 - Economy & Business

Neiman Marcus on the brink of bankruptcy

Illustration: Sarah Grillo/Axios

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

Go deeper: Retailers are guzzling data just like tech giants

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Major retailers close doors in U.S. in response to coronavirus outbreak

Apple's flagship store in New York City. Photo: Stephanie Keith/Getty Images

Major retailers are closing their doors or reducing their open hours across the United States in an effort to blunt the spread of the novel coronavirus.

Why it matters: While the closures may help slow the outbreak, they will also hamper the already-stressed retail industry, according to CNBC.

Go deeperArrowUpdated Mar 17, 2020 - Economy & Business

Nordstrom and Foot Locker close North America stores over coronavirus

A Nordstrom store in Manhattan. Photo: Spencer Platt/Getty Images

Nordstrom and Foot Locker announced the temporary closure of their stores, effective Tuesday, in response to the novel coronavirus outbreak.

Details: Nordstrom said in a statement all of its U.S. and Canada stores would remain closed for two weeks and it withdrew its fiscal 2020 forecast that it issued on March 3 because it said it "did not include the impact of COVID-19." Foot Locker's North America stores will remain closed through March 31.

U.S. rent and retail wars have begun

Times Square virtually empty on March 23. Photo: Lev Radin/Pacific Press/LightRocket via Getty Images

In just over a week, more than 47,000 chain stores across the U.S. have shut their doors as retailers have taken extreme measures to help slow the spread of the coronavirus pandemic, Bloomberg reports.

Why it matters: "Most have pledged to remain closed to the public for at least two weeks, but they may stay closed for much longer. In the same period, small retail businesses throughout the U.S. also hit pause on their physical locations but are not included in this list."