Neiman Marcus filed for bankruptcy on Thursday, making it the first major department store chain and largest American retailer to do so during the coronavirus pandemic. The luxury standby had already been in trouble—the New York Times reported that the company previously took on an “untenable” amount of debt and reacted too slowly to changes in shopping habits—and like so many businesses in and out of fashion, the public health crisis exacerbated its problems. In a statement, CEO Geoffroy van Raemdonck said Neiman Marcus and other retailers are “facing unprecedented disruption caused by the COVID-19 pandemic, which has placed inexorable pressure on our business.”
As the Times noted, the bankruptcy follows the disintegration of Barneys last year and comes as similar concerns mount over department store chains including Lord & Taylor and JCPenney. J.Crew also filed for bankruptcy this week, as did the brand of John Varvatos. In mid-March, Neiman Marcus took the same step as these and many other stores, closing all 43 of its locations as well as those of its subsidiaries Bergdorf Goodman and Last Call.
Despite the bleak overall landscape for brick-and-mortar retail in recent years, Neiman Marcus opened its first store in Manhattan last year. It was meant to anchor the shopping at Hudson Yards, the glimmering luxury mega-mall and residential complex. In a statement on Thursday, the company said “This is not a liquidation of our business. We are resilient, and we will continue to bring you the luxury fashion, service and relationships you cannot find anywhere else.”
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