Neiman Marcus is the first major department store group that has filed for bankruptcy protection in the pandemic. The New York Times reports the pandemic forced a closure of the 43 Neiman Marcus stores, Bergdorf Goodman stores, and Last Call outlets.
Issues for the brand have been stated to have been accumulating for years, acquiring debt from buyouts and not adjusting to consumer behavior. The pandemic sped up the inevitable.
This week already saw J. Crew file for bankruptcy and the trend shows those two retail giants are not the only ones to apply for bankruptcy. The Times points at Lord & Taylor and J.C. Penney as potential victims of the pandemic in the future.
The belief now is Neiman Marcus will reduce physical locations in hopes of attracting a new buyer.