The Coronavirus Pandemic Will Likely Leave A Lasting Legacy On Retail: Fewer Department Stores
America’s department stores are on a sinking ship, racing for a lifeboat that might not be big enough for all of them. For J.C. Penney, the bankruptcy clock is ticking after it skipped a mid-April interest payment. Its turnaround plans have been sidelined by the coronavirus pandemic, which has forced the closure of all of its stores. Macy’s, with liquidity drying up, has tapped advisors at investment bank Lazard and law firm Kirkland & Ellis to explore options that include new financing. Nordstrom in early April raised $600 million by placing a handful of its real estate assets into a separate company and borrowing against the new entity by issuing bonds. High-end department store chain Neiman Marcus also on April 15 missed a payment on some of its bonds, according to a letter sent to the retailer’s board from Marble Ridge Capital, which owns a significant portion of the $137.7 million in bonds that mature in October 2021. Read more at CNBC.
