NEW YORK (Reuters) – Macy’s Inc ( M.N) has employed financial investment bank Lazard Ltd ( LAZ.N) to explore alternatives for bolstering its finances after the department store operator lost the majority of its profits as it shut down all its stores as an outcome of the coronavirus break out, individuals knowledgeable about the matter said.
FILE PHOTO: People wait to enter Macy’s Herald Square ahead of early opening for the Black Friday sales in Manhattan, New York City, U.S., November 28,2019 REUTERS/Andrew Kelly
The relocation by Macy’s, the biggest U.S. outlet store operator by sales, suggests the intensity of the crisis facing brick-and-mortar sellers, which were already fighting with the shift to online shopping. The pandemic has required shop closures and widespread furloughs of staff members as state after state released shelter-in-place orders in efforts to include the spread of the coronavirus, which causes the COVID-19 respiratory health problem.
Macy’s has contacted Lazard lenders who specialize in finding ways to recapitalize financially struggling business and rework debts, the sources said. Macy’s has actually also gotten debt restructuring lawyers at Kirkland & Ellis LLP, 2 of the sources stated.
Macy’s has asked its advisors to assist handle its liabilities and check out options that might include brand-new funding, the sources stated, adding that no financial obligation restructuring is imminent.
The sources asked not to be recognized due to the fact that the considerations are personal.
A spokeswo