Neiman Marcus Update: Bankruptcy Filing Expected To Come On Sunday

As Neiman Marcus looks to gain a financial foothold amid the coronavirus pandemic, the luxury retailer could file for bankruptcy protection as soon as Sunday.

Neiman Marcus has been in talks with its lenders to raise about $600 million in emergency funding through the bankruptcy as it looks to wipe out more than $4 billion in debt, sources told CNBC. The company brought on the debt through its sale to Ares Management and the Canada Pension Plan Investment Board in 2013.

Due to the COVID-19 pandemic, Neiman Marcus has closed all of its stores and furloughed the majority of its 14,000 workers.

The company has struggled financially as sales dwindled because of the consumer shift to online shopping, which Neiman Marcus has reportedly had difficulty capturing because of its inability to invest in the technologies necessary based on its heavy debt load.

Neiman Marcus, which owns 43 namesake stores as well as Bergdorf Goodman and Last Call, is looking to emerge from bankruptcy as a stronger company, the news outlet said. The company has no plans to close stores through the restructuring, according to CNBC.

Neiman Marcus could be the first department store to file for bankruptcy during the coronavirus pandemic. JC Penney and Gap Inc. have also warned of financial struggles with the former expected to also file for bankruptcy in the coming weeks.