Neiman Marcus seeks Chapter 11 protection

By: Anne D'Innocenzio
Associated Press

NEW YORK - Neiman Marcus has field for Chapter 11 bankruptcy protection, the first department store chain and second major retailer to be toppled by the cornaviorus pandemic.
..... The move by the 112-year-old luxury department store chain was announced Thursday [05/07/2020] and follows the bankruptcy filing by J. Crew on Monday. [05/04/2020] Experts believe there will be more to come even as businesses start to reopen in parts of the country such as Texas and Florida.
.... "Prior to COVID-19, Neiman Marcus Group was making solid progress on our journey to long-term profitable and sustainable growth," said Neiman Marcus Group CEO Geoffrey Van Raemdonck in a statement. "However, like most businesses today, [05/07/2020] we are facing unprecedented disruption caused by the COVID-19 pandemic, which has placed inexorable pressure on our business."
..... The filing comes as the global luxury goods sector is heading for a stunning collapse of up to 35% this year [2020] due to coronavirus lockdowns, according to Claudia D'Arpizio, a partner at Bain & Company. The forecast represents a much steeper decline than the single-digit drop recorded after the 2008 recession. D'Arpizio said it would take two to three years to return to 2019 global sales of around $303 million.
..... Dallas-based Neiman Marcus, which operates 43 stores, said it expects to emerge from bankruptcy by this coming fall. [2020] A company spokeswoman said no mass closings are planned.
.... Like other nonessential retailers, Neiman Marcus temporarily closed it stores in mid-March. [2020] About 10 stores have been reponed for curbside pickup as some states have relaxed lockdown orders.
.... In order to keep operating during the restructuring, Neiman Marcus says it has secured $375 million in financing from creditors holding over two-thirds of the company;s debt. Neiman Marcus said that the restructuring will eliminate $4 billion of its roughly $5 billion in debt.
..... More than 60% of U.S. retailers have been closed since March. [2020]

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