Neiman Marcus Seeks Debt Restructuring To Avoid Bankruptcy

Sears has taken a lot of negative press leading up to and ever since its bankruptcy, but the company’s demise has overshadowed the financial struggles of another major retailer fighting to stay afloat. Neiman Marcus has been in talks with a group of creditors in recent weeks in an attempt to restructure debt and avoid a bankruptcy filing of its own, according to The Wall Street Journal.

Neiman Marcus has $4.7 billion in debt, almost all of which comes due in 2020 and 2021. The department store hopes to extend these debt maturities and even possibly reduce the total debt.

Like Toys ‘R’ Us, the debt load has very little to do with the retailer’s operations and is primarily the result of private equity buyouts. In 2013, Ares Management and Canadian public pension fund CPPIB acquired Neiman Marcus from two other private equity firms for $6 billion. Since the leveraged buyout, the retailer has been saddled with…