Luxury retail chain Neiman Marcus filed for bankruptcy Thursday, making it the second major US retailer to take this move because of the coronavirus contingency.
The company has been burdened with high debt for several years despite its efforts to compete in the era of electronic commerce.
Neiman Marcus said Thursday that he would use the famous “chapter 11” of restructuring to eliminate $ 4 billion in debt.
This bankruptcy comes just two days after clothing chain J Crew, another American retail giant, made the same decision, putting the future of 14,000 employees at risk.
The chain was forced to close its 43 stores in the United States as of last March due to sanitary confinement measures, as well as those of its subsidiary Bergdorf Goodman, but this stoppage did nothing but give the coup de grace to the company that had been struggling with its business strategy for several years.
The bankruptcy of Neiman Marcus also puts the commercial real estate sector in several American cities at risk, in which these stores were considered “anchors” for various shopping centers in locations such as Beverly Hills (California) or Boca Raton (Florida), as well like Hudson Yards in New York.
Thus, Neiman Marcus joins the list of bankruptcies in the retail sector that have succumbed in recent years given the changes in consumer behavior towards online commerce, such as Toys R Us, Gymboree, and J.C. Penney.