May 7 (UPI) -- Luxury retailer Neiman Marcus announced Thursday it has filed for bankruptcy, citing sizable debts and fallout from the coronavirus pandemic.
Company officials said the Chapter 11 filing, made in the U.S. Bankruptcy Court for the Southern District of Texas in Houston, is part of a debt restructuring deal with major creditors that involves $675 million in debtor-in-possession financing.
Neiman Marcus Group Chairman and CEO Geoffroy van Raemdonck said the retailer had made "solid progress" in returning to profitability in the face of stiff competition online.
"However, like most businesses today, we are facing unprecedented disruption caused by the COVID-19 pandemic, which has placed inexorable pressure on our business," he said.
The company, which has debts totaling more than $4.3 billion, manages nearly 40 stores and other retail outlets. Ten have recently reopened for curbside pickup but restrictions will keep others closed until at least June 1.
On Tuesday, outfitter J. Crew became the first national retail chain to file for bankruptcy since the start of the coronavirus crisis.