NEIMAN MARCUS REPORTEDLY TO FILE FOR BANKRUPTCY SOON

Things aren’t looking good for Neiman Marcus.

According to multiple reports, the luxury department store is allegedly just days away from filing for bankruptcy. All of its stores’ 43 locations have shuttered during the nationwide shutdown, as well as its Last Call stores and its two Bergdorf Goodman shops in New York City.

The Dallas-based retailer’s bondholder Marble Ridge Capital LP said Neimans failed to make a $5.7 million interest payment that was due Wednesday — possibly setting the stage for a forced bankruptcy filing.

The investment fund’s managing partner, Dan Kamensky, sent a letter to Neiman Marcus’ board on Thursday saying Marble Ridge would “take all necessary actions to protect its rights.”

Marble Ridge owns a significant amount of the $137.7 million in bonds that mature on October 15, 2021. Holders of those bonds didn’t participate in an exchange offer last year that pushed the retailer’s other debt obligations out as far as 2024.

In early March before the COVID-19 temporary store closures, the retailer said it would close most of its off-price Last Call stores by the first quarter of the 2021 fiscal year. Neimans said at the time that select Last Call stores will remain open to serve as a selling channel for Neiman Marcus residual inventory. In taking this action, the company said it will focus on serving “core high-value luxury customers” and free up resources to invest in Neiman Marcus and Bergdorf Goodman. Neimans expected to eliminate approximately 500 roles in the Last Call organization over the next eight months.

Now, due to Coronavirus, almost all of the department store’s 14,000 employees have been furloughed. At this time, it’s uncertain what Neiman Marcus will seek in bankruptcy court.