COVID-19 has hit the economy and businesses across the world heavily. Many local businesses are struggling to keep things afloat but it appears that major retail stores are facing similar issues. According to TMZ, Neiman Marcus will be filing for bankruptcy this week.
The company’s taken a major blow from the shutdown and had to close 43 stores in wake of the social distancing and stay-at-home orders. On top of that, their Last Call stores and two NYC Bergdorf Goodman departments have had to close their doors as well. Despite how massive of a company they are, the past few weeks have put there in dire debt. Apparently, they’re nearly $5B in the hole and are struggling to make payments which are in the millions. The filing for bankruptcy is likely going to come in the next few days.
Neiman Marcus is, of course, not the only physical brick-and-mortar store that’s facing financial issues. Many retailers have struggled since they do need customers to physically come in and purchase items. Nordstrom and Macy’s have also faced similar financial strain in recent times. As for Neiman Marcus, 14K employees were furloughed which is nearly their entire team.
At this point, it’s unclear what type of protection the company is seeking once they file docs in bankruptcy court but we will keep you posted on any updates.
