Neiman Marcus considers bankruptcy
The company struggles to ease its $4.3 billion debt load
Stocks impacted: Neiman Marcus Group Inc (NMG.A)
The luxury retailer continues to struggle with the debt load and is reportedly in the initial talks with lenders about a potential bankruptcy loan. According to sources, a loan would help keep the company running while it works out a recovery plan. A Chapter 11 bankruptcy filing would allow the company to keep its doors open, cut its borrowings and close weak stores to minimize costs. No formal decisions have been made on bankruptcy just yet. Earlier this month, Neiman Marcus said it will close more than half of its Last Call discount locations to focus on its luxury department stores. Considering the situation with the spreading coronavirus, there will likely be many more companies considering such steps ahead.
Make profit on it right now!