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U.S. luxury department chain, Neiman Marcus Group, filed for bankruptcy protection on Thursday. This marks one of the highest-profile corporate collapses yet among retailers forced to temporarily close stores in response to the COVID-19 pandemic, which has shoppers stuck at home.
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The Dallas-based retailer plans to cede control to creditors in exchange for eliminating $4 billion of debt (they also reportedly owe $6 million to Chanel). Its debt currently totals about $5 billion dollars.
Neiman Marcus joins retailer J. Crew who just filed for bankruptcy on Monday, and JCPenny, who is also considering doing the same.
READ MORE: J. Crew becomes first major retailer to file for bankruptcy due to Covid-19 - will it be the last?
The nearly 113-year-old company furloughed many of its roughly 14 000 employees in March and temporarily closed all its 43 Neiman stores, two Bergdof Goodman locations in New York, and two dozen Last Call stores. The stores will remain closed through the end of this month. The company expects to emerge from Chapter 11 proceedings in early Fall.
Compiled by Afika Jadezweni
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