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According to the latest reports, the company is currently in talks with lenders about a Neiman Marcus bankruptcy. The reason is that it is struggling to deal with debt, as well as the economic suffering caused by the coronavirus from China.
The goal of a Neiman Marcus bankruptcy would be for the company to reduce its debt while continuing to run its business. As it stands now, the company is saddled with $ 4.3 billion in debt. These problems stem from the sale to Ares Management and the Canada Pension Plan Investment Board in 2013, reports the New York Post.
Neiman Marcus’ bankruptcy news comes as the company struggles with its stores left closed due to coronavirus. But the retailer still offers its goods through its online store. The current goal is to open stores again in April, but that may change with the growing risk of the virus.
Here’s what a corporate spokesman told the New York Post when asked about the possible Neiman Marcus bankruptcy.
“We evaluate all measures to maintain our financial strength so that we can continue to serve our customers and employees and be a good partner for luxury brands globally. Our priority has been and will always be to ensure stability for our employees and brand partners. ”
With coronavirus closing many stores, Neiman Marcus may not be the only retailer in hot water this year.
At the time of writing, William White had no position in any of the above securities.
Article printed from InvestorPlace Media, https://investorplace.com/2020/03/neiman-marcus-bankruptcy/.
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