The company said it's not planning 'mass store closings' on a permanent basis, though its stores are currently temporarily closed.
Luxury department store chain Neiman Marcus Group filed for Chapter 11 bankruptcy protection Thursday as the coronavirus tips struggling retailers into existential crises.
The company said it's not planning"mass store closings" on a permanent basis, though its stores are currently temporarily closed. "We will reopen our doors as it is safe to do so based on the status of the pandemic," the company said in a statement."The Chapter 11 process will not impact the timing of our store re-openings, but it will ensure we are stronger financially when we do. If there were to be future store closings it would be an operational decision on a case by case basis.”
The company said it obtained support from"a significant majority of its creditors to undergo a financial restructuring, substantially reducing its debt load and interest payments and supporting continued operations during the COVID-19 pandemic and beyond." Neiman Marcus completed a debt restructuring plan in 2019 that was aimed at avoiding bankruptcy. But the coronavirus forced Neiman Marcus and other department stores to temporarily close their stores, exacerbating their woes. Department stores have struggled for years amid heightened competition from digital players such as Amazon, discount chains such as T.J. Maxx and specialty retailers.
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