Can Not Withstand The Impact Of The Epidemic! Niemann, A Hundred Years Old Shop In The United States, Is Cool. Who'S Next?

According to functional textiles, under the impact of the epidemic, the first large department store in the United States has been unable to live up to it. According to people familiar with the matter, Niemann, a Neiman Marcus, may apply for bankruptcy within a few days.

Niemann, a centenary shop, is about to go bankrupt.

　　 According to the news, the negotiation of hundreds of millions of dollars of loans between Niemann and creditors has entered the final stage. The loan will maintain part of its business during the bankruptcy proceedings, and many of Niemann's 14000 employees have been suspended.

It is worth noting that Niemann, founded in 1907, has a history of more than 100 years and has been in the United States. He bought the Bergdorf Goodman of New York in 1972, which was established in early twentieth Century.

Dragged down by the epidemic, Niemann has shut down all 43 Neiman Marcus stores, about 24 Last Call stores and two Bergdorf Goodman stores in New York.

In a report last week, S & P analysts wrote: "in view of the significant resistance brought by the pandemic of coronavirus and our anticipation of this year's US recession, we believe that the chances of Niemann's turning around are getting lower and lower. We continue to believe that its capital structure is not sustainable. " Niemann's credit rating was reduced to "junk" level.

The source said that once Niemann filed for bankruptcy, it might attract interest from potential buyers seeking cheap prices to acquire the company or some of its assets.

About Niemann:

Neiman Marcus is a high-end department store based on luxury goods, with online official website of Neiman Marcus department store. NM can be said to be one of the most high-end and unique fashion goods retailers in the world today. The products sold include men's and women's assembly, decoration, shoes and hats, daily beauty and cosmetic products. Up to now, it has been more than 100 years ago. It is considered as the oldest luxury department store in the United States.

The collapse of US retail businesses may have just begun.

According to Reuters, at present, 850 stores in JC Penney, another US Department store, are temporarily closed and forced to lay off workers. Although the online business is still in operation, it can make up for a drop in the bucket. Reuters said JC Penney is also not confident about its future development. Even after the shops are finally reopened, the long time closure of stores and the sharp drop in consumers are still a great challenge.

JCPenney was founded in 1902. So far, there are 1200 large-scale clothing stores in the United States, with a turnover of 38 billion US dollars in 1998 (equivalent to 320 billion yuan, exceeding the total sales volume of 290 billion yuan in 1998 in China).

Sales of many non essential retailers in the US have plummeted due to a large number of shops closing and consumers giving priority to necessities. This situation has brought great pressure to fashion companies, many of which have already suffered losses before the outbreak, and now only increase the risk of bankruptcy.

According to the latest data from the US Census Bureau, total retail sales in the United States dropped 6.2% in March. But for some types of enterprises, the situation is even worse. Department store sales fell by 24%, while sales of clothing and accessories retailers plummeted by 51%.

Although sales are running out, most companies still have large bills to pay, such as commercial rents. These companies have taken measures to cut costs, such as temporary leave for employees, to minimize all expenses and even to postpone paying rent. Large fashion companies often have revolving credit lines, which can lend money from these quotas and return them in operation. Now some banks are starting to lend a helping hand to help them cope with the crisis. However, whether these companies can survive the crisis may depend on how much cash they have available and when their largest loan will expire, that is, the full repayment time.

Under such great pressure, who will be the next to fall?