The financial challenges continue to mount for Neiman Marcus.
The luxury department store, known for its wide selection of designer shoes and clothes, has made it onto two lists of companies “at risk” of default and other financial difficulties published by Fitch Ratings Inc. in the last week. One list, which names companies that have significant loans to repay, also includes retailers such as J.Crew, Talbot’s and Cole Haan, Dallas News reports.
In total, Neiman Marcus has more than $5 billion in debt, with $1.69 billion of it in bonds and $2.84 billion in loans.
That said, the designer store chain is still faring much better than some of its department store competitors — it did not make any of the ratings company’s primary at-risk lists, which means it still has time to work out a strategy and bring in more sales. Fitch’s primary list also named Nine West, Claire’s and the chain of Sears department stores, which has been on the brink of bankruptcy for months.
Even though Neiman Marcus has been losing money for three consecutive years, the company has been trying to turn the situation around by closing several outlet stores and focusing on online sales.
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