NEIMAN MARCUS LUXURY BRAND WENT BANKRUPT

The Neiman Marcus retail chain had 43 stores, but by the end of March all of them were closed, including several stores of the subsidiaries and outlets. As a result, the sales fell to almost zero.

According to the New York Times, the company would have been able to cope with the temporary lack of sales due to the crisis, but even before the pandemic, Neiman Marcus had an unstable financial situation, associated with the long-term debts.

The debts, amounting to $ 4.8 billion, were hidden behind the splendor and satisfied customers.

According to the experts, Neiman Marcus and its subsidiaries will not disappear from the market, but will use bankruptcy to nullify the financial structure of the company. We should note that according to the data for 2017, the organization had 14,300 employees.

Neiman Marcus is popular among many experts of the fashion world. For example, the editor of Vogue magazine Edna Woolman Chase was calling Neiman Marcus the best store for any woman.

It is interesting that the news about bankruptcy came as a shock to the Ares Management Corp. - the company that owns the shares of Neiman Marcus.

This news was even more painful for the investment board of the Canadian retirement plan, which bought Neiman Marcus for $ 6 billion along with its debt in 2013.

Neiman Marcus was considered the epitome of an elite level of retail. The wealthiest people of the United States were among the regular customers of the company.