- Robyn Turk
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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.
