Neiman Marcus Group Inc. is preparing to file for bankruptcy protection as soon as Wednesday, with plans to restructure its debt in hopes of reopening most of the luxury chain’s stores after the coronavirus pandemic, WSJ Pro Bankruptcy reported. The lenders who would steer Neiman through bankruptcy are considering several options, including selling the business outright or closing some of Neiman’s 43 department stores to continue operating in a slimmed-down form. The company is near a debtor-in-possession financing agreement with existing lenders. The company has about $4.7 billion in debt. Neiman failed to make interest payments last week, starting a clock on a potential bankruptcy filing. One of the missed payments had a grace period of just five days. Reuters earlier reported that Neiman could file for bankruptcy protection as soon as this week. A potential buyer is Saks Fifth Avenue parent Hudson’s Bay Co., which could make an offer for the troubled retailer after Neiman tips into bankruptcy. Saks has tried unsuccessfully to merge with its rival three times in the past decade.
