Dallas-based luxury retailer Neiman Marcus has been struggling as it shut stores temporarily due to the Coronavirus outbreak. Consequently, the brand has skipped a debt payment that was due this week, according to Wall Street Journal.
This act has put the retailer in default of its obligation and a letter has been sent to them by hedge fund Marble Ridge Capital LP’s Daniel Kamensky, a bondholder.
Also Read: Neiman Marcus proceeds with bankruptcy protection amidst COVID-19 pandemic
His public letter expressed openly that the hedge fund would be willing to take all necessary action “to protect its rights, including its right to seek all remedies, all of which are expressly preserved.”
However, Neiman Marcus is in talks with its creditors to aid financing as they consider filing for protection under Chapter 11 bankruptcy in court. The brand is reeling under US $ 5 billion in debt that was procured as part of two private equity takeovers within a decade of each other.
Last year, the struggling retailer had to cut a deal with creditors to extend some maturities; however it just added US $ 100 million to their interest payments, further mounting the losses and debt amounts.
