Report: Dallas-based Neiman Marcus preparing to declare bankruptcy

Neiman Marcus Group, one of Texas’ iconic retail brands, is preparing to declare bankruptcy due to economic fallout from the coronavirus outbreak, sources told Reuters.

Its flagship company, Dallas-based Neiman Marcus, would be the first major U.S. department store to suffer an economic blow of this magnitude during the pandemic.

The move comes after NMG was forced to temporarily close all 43 Neiman Marcus locations, about two dozen Last Call stores and its two Bergdorf Goodman stores in New York. It had already furloughed some of its 14,000 employees.

Credit rating agency Standard and Poor’s lowered Neiman Marcus’ rating, saying that “in light of the significant headwinds stemming from the coronavirus pandemic and our expectation for a U.S. recession this year, we believe the company’s prospects for a turnaround are increasingly low.” — Naomi Andu