Neiman Marcus Group is expected to file for bankruptcy protection this week, according to sources speaking to Reuters.
The group has 43 Neiman Marcus department stores, 26 Last Chance outlet shops and two Bergdorf Goodman properties, both in New York.
The entire retail estate is currently closed because of the Covid-19 pandemic and 14,000 employees have been furloughed.
Reuters reports that the group is negotiating a line of credit with its suppliers worth hundreds of millions of dollars that could be sufficient for the company to keep some of its operations alive during bankruptcy proceedings.
Neiman Marcus Group has bee weighed down with borrowings of almost $5 billion, and has struggled to adjust to a retail landscape where ecommerce giants are amassing higher and higher market shares.
However, for the retail sector as a whole, including watch and jewelry stores, it is further evidence of how challenging it will be to survive through the Coronavirus lock down and beyond.