Retail industry rattled as Neiman Marcus becomes latest chain to file for bankruptcy

A sign hangs outside of a Neiman Marcus store that has been shuttered by the COVID-19 pandemic at Oak Brook Center shopping mall on May 07, 2020 in Oak Brook, Illinois. Photo by Scott Olson/Getty Images
A sign hangs outside of a Neiman Marcus store that has been shuttered by the COVID-19 pandemic at Oak Brook Center shopping mall on May 07, 2020 in Oak Brook, Illinois. Photo by Scott Olson/Getty Images

U.S. luxury department chain, Neiman Marcus Group, filed for bankruptcy protection on Thursday. This marks one of the highest-profile corporate collapses yet among retailers forced to temporarily close stores in response to the COVID-19 pandemic, which has shoppers stuck at home.

READ MORE: And then there was nada: Prada's Sandton City Diamond Walk store closes its doors for good

The Dallas-based retailer plans to cede control to creditors in exchange for eliminating $4 billion of debt (they also reportedly owe $6 million to Chanel). Its debt currently totals about $5 billion dollars. 

Neiman Marcus joins retailer J. Crew who just filed for bankruptcy on Monday, and JCPenny, who is also considering doing the same. 

READ MORE: J. Crew becomes first major retailer to file for bankruptcy due to Covid-19 - will it be the last? 

The nearly 113-year-old company furloughed many of its roughly 14 000 employees in March and temporarily closed all its 43 Neiman stores, two Bergdof Goodman locations in New York, and two dozen Last Call stores. The stores will remain closed through the end of this month. The company expects to emerge from Chapter 11 proceedings in early Fall. 

Compiled by Afika Jadezweni

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