Major Department Store Goes Bankrupt

Major Department Store Goes Bankrupt

(NewsReady.com) – Neiman Marcus opened its first outpost in Manhattan in March 2019. A little over a year later, they’re filing for bankruptcy due to COVID-19. The company had to close 43 stores temporarily across the nation because of the pandemic. The luxury retailer was confident in its ability to provide “curated experiences,” now the coronavirus is making that a lot more difficult.

On May 7, the company filed for Chapter 11 bankruptcy. In a press release, Neiman Marcus revealed it’s undergoing “financial restructuring,” not total liquidation, in order to continue providing the same services it’s committed to.

Neiman Marcus’ decision marks the first major department store to go bankrupt because of COVID-19’s impacts on the economy. This is a sign that even the biggest retailers can fall at the hands of this virus. Luxury goods might be the first to go, but truly essential retailers should be cautious.

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