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Neiman Marcus files for Chapter 11 bankruptcy amid coronavirus pandemic

By Natalie Dreier, Cox Media Group National Content Desk
By Natalie Dreier, Cox Media Group National Content Desk

High-end retailer Neiman Marcus is following other businesses in seeking Chapter 11 bankruptcy production due to the coronavirus.

Company officials made the announcement Thursday, The Associated Press reported.

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It is the first department store chain to do so but the second retailer this week.

Monday, J. Crew filed for bankruptcy protection, but more are expected as the country starts to reopen, the AP reported.

Neiman Marcus operates 43 stores, 10 of which have reopened since they were forced to close in mid-March, and plans to come out of bankruptcy in the fall.

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The company also operates 22 Last Call and two Bergdorf Goodman stores. It has nearly $5 billion in debt, NBC News reported.

It has been able to get $675 million in financing to get through the reorganization, according to NBC News.

Neiman Marcus FILE - This March, 11, 2009, file photo, shows the Neiman Marcus store in Dallas. Neiman Marcus, the 112-year-old storied luxury department store chain, is seeking Chapter 11 bankruptcy protection, the first department store to be toppled by the coronavirus pandemic. As part of the bankruptcy filing, Neiman Marcus says it has secured $675 million in financing from creditors to keep operating during the restructuring, holding over two-thirds of the company’s debt. (AP Photo/Tom Pennington, File) (Tom Pennington/AP)

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