Luxury Retailer Neiman Marcus Is Seeking Chapter 11 Protections

A major retailer filed for Chapter 11 bankruptcy due to the pandemic's impact, with $5.1 billion in debt. The CEO sees this as a chance to restructure financially. Creditors have pledged $675 million to keep the business running and $750 million for recovery. Other retailers like J.Crew and possibly JCPenney face similar issues. Despite store closures, Neiman Marcus saw a rise in digital sales and plans to emerge stronger post-bankruptcy. The CEO reassures customers of continued service and transformation.

What was the primary reason for the retailer's bankruptcy filing?

• The CEO decided to retire.

• The company wanted to expand its operations.

• The pandemic and high interest payments disrupted their financial plans.

• The company was already bankrupt before the pandemic.

How much of the company's debt will the bankruptcy protection address?

• $2 billion

• $4 billion

• $1 billion

• $3 billion

What financial support did the company's creditors provide?

• $675 million in financing and $750 million for recovery

• $500 million in total

• $1 billion in loans

• $2 billion in grants

Which other retailer filed for bankruptcy around the same time?

• Walmart

• Macy's

• Target

• J.Crew

What was the impact of the pandemic on Neiman Marcus's sales?

• Sales remained the same.

• The company stopped all sales.

• Digital sales increased by double digits.

• Sales decreased significantly.