DOMINO EFFECT

Neiman Marcus to File for Bankruptcy: Report

The U.S. retailer has had to close 43 of its Neiman Marcus locations, two dozen Last Call stores and two Bergdorf Goodman stores in NYC.

U.S. retail giant Neiman Marcus is filing for bankruptcy after having to close its stores over the coronavirus pandemic, according to Reuters. The Dallas-based company temporarily closed its 43 flagship Neiman Marcus stores, two dozen Last Call stores and its two Bergdorf Goodman stores in New York over nation-wide shelter-in-place regulations, rendering the company unable to pay its billions in debts. It has also furloughed most of its 14,000 employees. Reuters reports that the bankruptcy filing could come within days. The debt-laden retailer, which carries about $4.8 billion in loans, skipped millions of dollars in debt payments last week. Neiman Marcus is the first major retailer to reach this level, but Reuters reports that Macy’s and Nordstrom have also been working on new financing and that J.C. Penney is contemplating a bankruptcy filing.