Neiman Marcus Group is stepping up preparations to seek bankruptcy protection, after the coronavirus pandemic forced the debt-laden U.S. luxury department store chain to close its stores, Reuters reported. Neiman began holding confidential discussions last week with bondholders about possible financing that would help the company continue operating while under bankruptcy protection, the sources said. The company has also started similar discussions in recent days with its lenders. Up until last week, Neiman had received inquiries from creditors about its next moves but had not commenced discussions about a possible bankruptcy. Even though these talks are advancing, the Dallas-based retailer is several weeks away from a potential bankruptcy, and it is still possible that it manages to escape it. Creditors could give Neiman additional time to make upcoming debt payments due this month while restructuring discussions continue, which could result in a transaction that reworks financial obligations outside of bankruptcy proceedings.
