The coronavirus pandemic has wreaked havoc on the fashion industry as business has more or less, come to a standstill.
Departments stores already struggling to curb their losses due to the meteoric rise of online shopping, resale apps such as Facebook Marketplace and the consumer takeover giant Amazon’s expanding fashion and beauty market, have forced department stores to shut down or furlough employees.
Newer online retailers, such as Boohoo and Asos utilize social media “influencers” to harness the power of fast, affordable fashion, further driving a dent into any hopes of profit for luxury stores.
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This latest setback marks the beginning of the end for many brands. It is rumored that Neiman Marcus Group is headed for bankruptcy. Last week, it announced the temporary closure of all Neiman Marcus, Bergdorf Goodman and Last Call stores as the coronavirus continues to accelerate throughout the United States.
“Neiman Marcus Group was born out of love – love for our customers, love for our associates, and love for our brand partners. There is nothing we care about more than the safety and well-being of our customers and our associates. We have a rich history of being responsible members of the communities we serve, and must do our part to help stop the spread of COVID-19. We encourage everyone to remain safe and healthy during this time of uncertainty.” said Geoffroy van Raemdonck, CEO of Neiman Marcus Group.
The luxury retailer, now apparently in discussion with different lenders, had already been heavily discounting merchandise in an effort to attract customers. If bankruptcy occurs, Neiman Marcus would continue operations while it works on a restructuring plan to settle debts.
