China News Agency, New York, May 7 (Xinhua) According to US media reports on the 7th, Neiman Marcus, a 113-year-old high-end department store in the United States, filed an application for bankruptcy protection with the court that day.
The New York Times stated that Neiman Marcus was the first large department store in the United States to apply for bankruptcy protection during the New Coronary Pneumonia epidemic. Affected by the epidemic, the company temporarily closed more than 40 stores at the end of March, and its turnover dropped sharply. The Associated Press reported that Neiman Marcus said that as part of the bankruptcy protection application, the company has secured $ 675 million from creditors to maintain the company's operations during the reorganization. Creditors also promised to provide a $ 750 million financing plan to support the company ’s operations after the company ended its bankruptcy protection.
The media pointed out that the epidemic has led to a surge in the risks of the US retail industry. American apparel retail brand J. Crew filed for bankruptcy protection on May 4 and is trying to obtain $ 400 million in financing to maintain operations during the epidemic. CNN reported that analysts warned that companies such as JC Penney and GNC are also facing bankruptcy risks. Nordstrom also announced that it will permanently close 16 stores nationwide. "Wall Street Journal" pointed out that in addition to the suspension of business, the epidemic also led to the interruption or delay of product delivery, retailers cancel orders and other issues, retailers and manufacturers are under great pressure.
The new coronary pneumonia epidemic is continuing to hurt the US economy. According to data released by the US Department of Labor on the 7th, from April 26 to May 2, the United States added nearly 3.2 million people for the first time to apply for unemployment relief; the number of Americans who applied for unemployment relief in the past 7 weeks has exceeded 33 million.
The New York Times said that the new coronary pneumonia epidemic was the direct cause of Neman Marcus ’application for bankruptcy protection. However, the company's operating problems have been accumulated for many years, with more than 4 billion US dollars of debt, and failed to adjust its business strategy in a timely manner in response to new changes in the retail environment. Neiman Marcus has been on the verge of danger before the outbreak. CBS pointed out that after the outbreak of the US epidemic in March, about 60% of retailers suspended operations, but the plight of large department stores such as Neiman Marcus has continued for a long time. Because American consumption habits are changing, especially when it comes to buying apparel, people tend to shop at discount stores or online than department stores.
According to CNN, the epidemic has caused Americans to further reduce luxury consumption and shift more to online shopping, which is undoubtedly "a worse for traditional retail". (Finish)