( Reuters) – Neiman Marcus Group is preparing to look for bankruptcy protection as quickly as this week, becoming the very first significant U.S. outlet store operator to catch the financial fallout from the coronavirus outbreak, individuals acquainted with the matter said.
The debt-laden Dallas-based company has been entrusted to few alternatives after the pandemic forced it to briefly shut all 43 of its Neiman Marcus areas, roughly 2 lots Last Call stores and its two Bergdorf Goodman shops in New York.
Neiman Marcus is in the lasts of working out a loan with its creditors totaling hundreds of countless dollars, which would sustain some of its operations during insolvency proceedings, according to the sources. It has actually also furloughed a lot of its approximately 14,000 employees.
The personal bankruptcy filing could come within days, though the timing could slip, the sources stated. Neiman Marcus skipped countless dollars in debt payments recently, consisting of one that just gave the business a few days to prevent a default.
Neiman Marcus’ loanings amount to about $4.8 billion, according to credit scores firm Standard & Poor’s. A few of this debt is the legacy of its $6 billion leveraged buyout in 2013 by its owners, personal equity company Ares Management Corp and Canada Pension Investment Board (CPPIB).
The sources requested privacy since the personal bankruptcy preparations are personal. Neiman Marcus and Ares declined to comment, while CPPIB agents did not instantly react to