MAY 7 — Neiman Marcus Group filed for bankruptcy protection today, marking one of the highest-profile collapses yet among retailers forced to temporarily close stores in response to the Covid-19 pandemic. The US luxury department store chain filed for bankruptcy in a federal court in Houston, and...
Thursday, 07 May 2020 11:45 PM MYT
The US luxury department store chain filed for bankruptcy in a federal court in Houston, and said it had reached agreement with creditors for US$675 million of debtor-in-possession financing to aid operations while it attempts to reorganize. Neiman Marcus, laden with debt after a private equity takeover, reached a deal with creditors for more financial breathing room last year that avoided a bankruptcy filing but succumbed in recent weeks to government orders that closed businesses deemed non-essential to slow the spread of the novel coronavirus.
The nearly 113-year-old company in March furloughed many of its roughly 14,000 employees and temporarily closed all its 43 Neiman stores, two Bergdorf Goodman locations in New York and roughly two dozen Last Call stores. The founders started the company after considering and passing on an investment in a then-unknown soft drink called Coca-Cola, according to the company’s website. It added Bergdorf Goodman, itself founded around the turn of the 20th century, to its ranks in the 1970s.
The pressures caused Neiman Marcus to buckle under its heavy debt load, which included increased interest expenses resulting from its out-of-court restructuring last year.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
US luxury department store chain Neiman Marcus files for bankruptcy113-year-old company will hand over control to lenders under the agreement that will eliminate US$4 bil of debt. FMTNews NeimanMarcusGroup
Read more »
Mattel reports big loss on weak sales amid Covid-19 pandemic | Malay MailNEW YORK, May 6 ― Mattel reported a big first-quarter loss amid falling sales of most of its toys as the coronavirus roiled operations and shuttered many retail outlets. The toy company, maker of Barbie and Thomas & Friends, suffered a US$210.7 million (RM906.5 million) loss in the...
Read more »
Airbnb slashes staff in effort to ride out Covid-19 pandemic | Malay MailSAN FRANCISCO, May 6 ― Home-sharing platform Airbnb said yesterday it will slash one fourth of its workforce ― some 1,900 people ― as the coronavirus pandemic crushes the travel industry. The cuts are needed for the San Francisco-based company to survive until people start travelling anew,...
Read more »
Health reforms must survive political turmoil, says expert | The Malaysian InsightDr Khor Swee Kheng says the Covid-19 pandemic has exposed weaknesses in Malaysia's healthcare system.
Read more »
Sperm containing virus raises small risk of Covid-19 spread via sexMore research is needed to see whether sexual transmission might spread the Covid-19 pandemic. FMTNews Covid19
Read more »
Saudi Arabia forms police unit to enforce Covid-19 curbs on social gatherings | Malay MailDUBAI, May 7 — Saudi Arabia has formed a police unit to monitor violations of rules banning gatherings of more than five people imposed to curb the spread of the coronavirus, the state news agency SPA said on Thursday. The kingdom had previously said such gatherings were prohibited and said on...
Read more »