Neiman Marcus Files for Bankruptcy Amid Pandemic

Neiman Marcus is feeling the effects of the global health crisis.

The fashion retailer, faced with a decline in sales amid the pandemic, has filed for bankruptcy, NBC News reported on Thursday (May 7).

“Like most businesses today, we are facing unprecedented disruption caused by the COVID-19 pandemic, which has placed inexorable pressure on our business,” Geoffroy van Raemdonck, chairman and CEO of Neiman Marcus Group, said in a statement.

The company “filed for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division. It has secured $675 million in financing to get it through its reorganization,” according to the report. The company reportedly has nearly $5 billion in debt, “in part due to two leveraged buyouts in less than 10 years.”

“We will emerge a far stronger company. In a world that is changing, we are uniquely positioned to give our brand partners access to our loyal luxury customers like no other company,” Geoffroy went on to say.

Neiman Marcus plans to emerge out of bankruptcy in early fall of this year.

Here is when the White House is reportedly planning to “wind down” the coronavirus task force…

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