Private equity-backed Neiman Marcus Group has reportedly entered talks with lenders to file for bankruptcy, as the luxury retailer reels from debts racked up through its leveraged buyout.
The company had been in initial discussions with lenders about a potential bankruptcy loan to keep the lights on while it hashes out a recovering plan, people familiar with the matter told Bloomberg.
The people added that the situations is fluid and plans may change depending on market conditions.
The majority of its $4.3bn debt load comes from its $6bn leveraged buyout in 2013, when Ares Management and the CPPIB acquired it from other private equity firms.
Neiman Marcus was in talks three years ago regarding a partial or full sale of the company, Reuters reported at the time, but went on to shelve plans for buyout by trade-buyer Hudson’s Bay and potential IPO.
The company temporarily closed its 43 branded stores across the US last week prompted by the Coronavirus pandemic, as well as two Bergdorf Goodman stores in New York, 24 Last Call locations and one Mytheresa shop located in Germany.
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