Fresh off the heels of J.Crew declaring bankruptcy, yet another American retail store is begrudgingly following suit. Luxury department chain Neiman Marcus filed for the same this Thursday in a report by the New York Times.
However, the company assured patrons that they would not be permanently shutting down and that the move serves to protect the longevity of Neiman Marcus amid the COVID-19 pandemic.
In a letter to customers, brand executive Geoffroy van Raemdonck further explains, “This is simply a process that allows our company to alleviate debt, access additional capital to run the business during these challenging times, and emerge a stronger company with the ability to better serve you and continue our transformation over the long term.”
They also addressed the news on an Instagram post by writing, “This is not a liquidation of our business. We are resilient, and we will continue to bring you the luxury fashion, service, and relationships you cannot find elsewhere."
The New York Times reports that the company is looking to “eliminate $4 billion of debt in exchange for ceding control to creditors.” Along with this is a $675 million loan to keep the company afloat as they “navigate bankruptcy proceedings.”
Neiman Marcus currently operates under three brands with their Bergdorf Goodman and the Last Call chains, amounting to 69 physical stores all in all as of last year. The online outlet mytheresa.com also falls under the luxury group but is not, however, included in the bankruptcy.