Investors to challenge Neiman Marcus bankruptcy loan
Sources tell Reuters an investor group will push Neiman Marcus to sell itself instead of getting a loan for its looming bankruptcy.
They plan to challenge a $600 million financing package the retailer has lined up already.
That's according to people familiar with the matter.
These sources say Neiman Marcus is looking to seek bankruptcy protection as early as Monday (April 27).
Instead, the investors plan to offer a larger loan to the retailer so long as Neiman Marcus seeks an outright sale.
The investors see Saks Fifth Avenue owner Hudson's Bay as a logical buyer.
It's unclear if they're in a position to buy Neiman Marcus, however.
Hudson's Bay has been unsuccessful in talks to acquire it in the past and they were unavailable for comment.
Neiman Marcus - like other department store firms - has struggled in recent years to compete with discount retail chains on top of a consumer shift to online shopping.
The final approval of the company's financing now rests with a bankruptcy judge.
The debt-laden company's sales have all but evaporated as the ongoing crisis forced it to temporarily shut all 43 Neiman Marcus locations.
It already furloughed many of its roughly 14000 employees last month.
Other companies have been battling to avoid Neiman Marcus' fate.
Nordstrom recently secured new financing by borrowing against some of their real estate while J.C. Penney is exploring a bankruptcy filing to rework its unsustainable finances.
