The retail industry is facing some dark times as the COVID-19 pandemic carries on.
Reports have surfaced that Neiman Marcus is allegedly just days away from filing for bankruptcy. All of the high-end department stores' 43 locations have shuttered during the nationwide shutdown, as well as its Last Call stores and its two Bergdorf Goodman shops in New York City. The Dallas-based company is currently $5 billion in debt and can’t foot its monthly bills for rent, which are millions of dollars each month.
Almost all of the department store’s 14,000 employees have been furloughed. At this time, it’s uncertain what Neiman Marcus will seek in bankruptcy court.
At the end of March, Macy’s announced that it furloughed most of its 125,000 employees to shore up its finances. And just last week, True Religion shared its own financial woes, as the denim retailer also filed for Chapter 11, citing that it “simply could not afford” to wait out the pandemic. In addition to brick-and-mortar stores, True Religion sold its items at Neiman Marcus and Macy’s.
At the beginning of March, before the pandemic set in, Modell’s had already declared bankruptcy. The retail chain subsequently had a liquidation sale with intentions to close all of its locations in the near future.
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