Neiman Marcus Files for Bankruptcy Amid Coronavirus Pandemic

It's been announced that upscale department store chain Neiman Marcus has filed for bankruptcy, amid the coronavirus pandemic. According to USA Today, the company followed up the news by stating that it has no plans to do any permanent "mass store closings," though all of its stores are temporarily closed at this time.

"We will reopen our doors as it is safe to do so based on the status of the pandemic," read a statement from Neiman Marcus. "The Chapter 11 process will not impact the timing of our store re-openings, but it will ensure we are stronger financially when we do. If there were to be future store closings it would be an operational decision on a case by case basis." Neiman Marcus added that it has obtained support from "a significant majority of its creditors to undergo a financial restructuring, substantially reducing its debt load and interest payments and supporting continued operations during the COVID-19 pandemic and beyond."

Another company that recently filed Chapter 11 is U.S. retailer J. Crew. In a statement, Jan Singer — Chief Executive Officer of the J.Crew Group — said, "This agreement with our lenders represents a critical milestone in the ongoing process to transform our business with the goal of driving long-term, sustainable growth for J.Crew and further enhancing Madewell’s growth momentum. Throughout this process, we will continue to provide our customers with the exceptional merchandise and service they expect from us, and we will continue all day-to-day operations, albeit under these extraordinary COVID-19-related circumstances. As we look to reopen our stores as quickly and safely as possible, this comprehensive financial restructuring should enable our business and brands to thrive for years to come."

"J.Crew and Madewell are two classic American brands with deeply loyal customers," added Kevin Ulrich, Chief Executive Officer of Anchorage Capital Group. "We look forward to supporting Jan, Libby and the management team to recognize their full potential. The significant deleveraging contemplated by this agreement, coupled with J.Crew Group’s strategy to strengthen its robust e-commerce platform to drive continued growth in its direct-to-consumer segment, will position the Company for future success."

Another U.S. business that is feeling the effects of the coronavirus pandemic is electronic and home appliance big box store Best Buy. While the company has not filed for bankruptcy, it was forced to furlough roughly 51,000 hourly employees. In a statement, Best Buy CEO Corie Barry told employees that the move was only temporary.