Neiman Marcus filed for individual bankruptcy safety on Thursday with its strategies for a turnaround acquiring been derailed by the coronavirus pandemic.
CNBC claimed the Chapter 11 submitting was a “stunning fall” for the luxury department keep chain, which “had been struggling with competitors from on the internet rivals and dwindling income ahead of the outbreak.”
“The organization took on an untenable volume of debt as aspect of two leveraged buyouts by personal-fairness corporations and did not answer immediately sufficient to alterations in procuring routines,” The New York Occasions claimed. “Together, those people developments still left the team in a precarious situation even ahead of the virus hit.”
Neiman claimed it would use the individual bankruptcy process to implement a restructuring settlement with lenders that will enable it to considerably reduce its $4 billion debt load and interest payments and carry on operating “during the COVID-19 pandemic and further than.”