Add luxury retailer Neiman Marcus to the list of companies ready to ‘go under.’ According to this Reuters report, the company is ‘confidentially’ restructuring $4.9 billion in debt. Trust me, it won’t be long before Neiman Marcus files for Bankruptcy.
U.S. high-end department store chain Neiman Marcus has hired investment bank Lazard Ltd (LAZ.N) to explore ways to bolster its balance sheet as it seeks relief from $4.9 billion in debt, people familiar with the matter said on Friday.
Neiman Marcus Group LLC [NMRCUS.UL] is in no immediate risk of bankruptcy, the sources said. However, the move makes it the highest-profile U.S. retailer to turn to a debt restructuring adviser so far this year, as consumers increasingly embrace the internet for shopping.
The sources asked not to be identified because the matter is confidential. Neiman Marcus did not immediately respond to a request for comment, while Lazard declined to comment. One of Neiman Marcus’ current owners, Canada Pension Plan Investment Board (CPPIB), declined to comment.
Neiman Marcus operates 42 Neiman Marcus Stores across the United States and two Bergdorf Goodman stores in Manhattan. The company also operates 27 Last Call clearance centers, according to its website.
In addition to grappling with headwinds affecting other U.S. retailers, a plunge in energy prices has further hit Neiman Marcus, because many of its affluent shoppers in Texas have curbed their spending.
The stronger U.S. dollar has also been negative for Neiman Marcus, curbing spending at its Bergdorf Goodman department stores that are popular with New York tourists.