Luxury retailer Neiman Marcus Group is reportedly considering filing for bankruptcy as it struggles with $4.3 billion in debt.
No plan has been finalized, but Neiman Marcus has held discussions with lenders about a possible bankruptcy loan, according to Bloomberg.
The lifeline would allow the company to continue operating while it puts together a recovery plan.
The situation could change, sources familiar with the matter told Bloomberg. It will depend on the market conditions and the fallout from the coronavirus, which prompted Neiman Marcus to close its stores last week.
Before the pandemic, the retailer was already struggling to maintain its footing in the market as shoppers increasingly moved away from storefronts in favor of online offerings.
If plans for bankruptcy move forward, it will join several other retailers that have filed for bankruptcy in the past year, including Forever 21 and Modell’s Sporting Goods. A trio of investors acquired Forever 21 for $81 million in a deal that was approved by a bankruptcy court judge in mid-February.
Last September, Neiman Marcus closed on a nearly $27 million loan for its Fort Lauderdale location, after securing a $37 million loan from Credit Suisse for its Shops at Merrick Park location in July. [Bloomberg] — Sylvia Varnham O’Regan
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