SAN FRANCISCO (KRON) – Luxury department store Neiman Marcus will likely file for bankruptcy as soon as this week, according to a new report.
The announcement comes after the high-end fashion retailer temporarily shut all of its stores – including those in San Francisco, Walnut Creek, and Palo Alto – due to the economic impacts of the coronavirus.
Reuters reports Neiman Marcus, which has already furloughed many of its 14,000 workers, is in the final stages of negotiating a loan with its creditors which would help sustain some of its operations during bankruptcy proceedings.
By filing for Chapter 11 bankruptcy protection, Neiman Marcus can remain in business while closing underperforming stores.
“Retail has hung a closed sign on the door literally and metaphorically,” Neil Saunders, managing director of GlobalData Retail, told the Associated Press. “This is the most catastrophic crisis that retail has faced – worse than the financial crisis in 2008, worse than 9/11. Almost overnight, the retail economy shifted from being about things people want to things that they need.”