- Robyn Turk |
A bankruptcy filing might be in the cards for luxury retail chain Neiman Marcus, as was first reported by Bloomberg Law on Monday. The Dallas-based company is struggling with debts and has been meeting with its lenders to discuss options that would allow it to continue operating and cut costs, and one such option would be to file for bankruptcy.
The Neiman Marcus Group has been owned by Ares Management LLC and the Canada Pension Plan Investment Board since 2013. Its current debt is around 4.5 billion dollars.
The retailer temporarily closed all of its stores in response to the COVID-19 pandemic, which it noted in a recent statement has caused disruption to its business.
"We are evaluating all courses of action to preserve our financial strength so that we may continue serving our customers and associates, and being a great partner to luxury brands globally," the company commented in a statement. "Our priority has been and will always be to ensure stability for our associates and brand partners."
Changes are happening at Neiman Marcus
The Neiman Marcus Group announced plans to restructure its business several weeks ago, prior to announcements of store closures related to COVID-19. It said at the time that it will close the majority of its off-price brand Last Call by the first quarter of the fiscal year 2021, eliminating approximately 500 employee roles.
The company said that its plan to wind down Last Call operations is due to a desire to invest more resources in its Neiman Marcus and Bergdorf Goodman brands, thus strengthening its place in the luxury sector.
Picture courtesy of Neiman Marcus