Neiman Marcus files for Chapter 11 bankruptcy
Photo | Grant Welker
The Natick Mall location of Neiman Marcus was sold to Bulfinch.
Neiman Marcus, which has a location in Natick, announced Thursday it has filed for Chapter 11 bankruptcy as the impacts of the coronavirus-stunted economy begin to materialize.
The bankruptcy agreement will provide the company with $675 million in financing from creditors to keep operating as well as $750 million exit financing with the company expecting to complete the bankruptcy process by early fall. The bankruptcy is expected to eliminate $4 billion of the company’s debt, according to a company statement.
The Dallas-based company has Massachusetts locations in the Natick Mall and Copley Place in Boston. Both locations remain closed due to the coronavirus pandemic.
The bankruptcy should not impact the reopening of stores, according to the company. Furloughs or temporary salary reductions have been put into effect for a large portion of associates through at least May 31. Currently, 10 store locations are open for curbside pickup, with two additional stores open by appointment.
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