The luxury retailer Neiman Marcus has proceeded with talks of a possible bankruptcy protection by the end of this month.
After struggling to earn profits for several quarters and the global spread of COVID-19 resulting in shutting of their retail stores, the Neiman Marcus Group is in talks with various creditors to provide bankruptcy protection to continue its operations.
The Group has been having confidential discussions with its lenders to provide financial backing in these troubling times.
According to Reuters, the Group can still evade bankruptcy in the coming weeks; however, due to the store closures it may get difficult to retain finances for the Group.
Neiman Marcus is the second American department store chain that may face the wrath of e-commerce as another luxury department chain Barney’s filed for bankruptcy last year.
American department stores have struggled to bring footfalls due to the rise of e-commerce portals like Net-a-Porter and Moda Operandi. These stores also face indirect competition from resellers like The RealReal that have gained popularity in the past few years.
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