Neiman Marcus Group is stepping up preparations to seek bankruptcy protection, after the coronavirus pandemic forced the debt-laden U.S. luxury department store chain to close its stores. Neiman began holding confidential discussions with bondholders about possible financing that would help the company continue operating while under bankruptcy protection, the sources said. The company has also started similar discussions in recent days with its lenders, one of the sources said. Even though these talks are advancing, the Dallas-based retailer is several weeks away from a potential bankruptcy, and it is still possible that it manages to escape it.

Neiman reached a deal last year with creditors to rework debt and avoid a bankruptcy filing, gaining more financial breathing room. But the coronavirus outbreak forced the company to close all Neiman, Bergdorf Goodman and Last Call stores it operates through the end of April, and furlough most of its 14,000 employees. The closures have resulted in a cash crunch just before significant interest payments on portions of its more than $4 billion of debt are due starting April 15.

article: Neiman Marcus advances bankruptcy preparations