Neiman Marcus has filed bankruptcy protection.
the first department store chain and second major retailer to be toppled by the coronavirus pandemic.
The move by the 112-year-old storied luxury department store chain was announced Thursday.
Experts believe there will be more to come even as businesses start to reopen in parts of the country like Texas and Florida.
“Prior to COVID-19, Neiman Marcus Group was making solid progress on our journey to long-term profitable and sustainable growth,” said Neiman Marcus Group CEO Geoffroy van Raemdonck in a statement.
“However, like most businesses today, we are facing unprecedented disruption caused by the COVID-19 pandemic, which has placed inexorable pressure on our business.”
The filing comes as the global luxury goods sector is heading for a stunning collapse of up to 35% this year due to coronavirus lockdowns.
The forecast represents a much steeper decline than the single-digit drop recorded after the 2008 recession.
Dallas-based Neiman Marcus, which operates 43 stores, said it expects to emerge from bankruptcy by this coming fall.
Neiman Marcus says it has secured $675 million in financing from creditors holding over two-thirds of the company’s debt.
Neiman Marcus said that the restructuring will eliminate $4 billion of its roughly $5 billion in debt.