Carry Over 35 Billion Yuan Debt! The United States, A Century Old Giant, Can Not Sustain It.

Niemann, Marcus, a 112 year old high-end retail department store in the United States, filed for bankruptcy protection on the 7 th of the local time. This is the second largest retail enterprise to apply for bankruptcy protection in the United States this week.

In a statement released on the same day, Niemann and Marcus said they had filed for bankruptcy protection in a court in Houston, Texas. At present, the company has received $675 million from the creditor's office and maintained its operation during bankruptcy. Reuters reported that the bankruptcy petition filed by Nyman Markus would exempt the company from about $4 billion in debt, which currently has a total debt of about $5 billion. It is reported that by the end of March, affected by the new crown pneumonia epidemic, Nyman Markus was forced to close all 43 stores. At the same time, due to a large amount of debt and unable to adapt to the market rhythm, the group was in danger before the outbreak.

Mary Epuna, a retail analyst in the US, the problems facing Niemann and Marcus are also faced by other retailers. Sax's boutique stores in Fifth Avenue may also encounter such problems in the future. Niemann and Marcus apply for bankruptcy protection will affect many people, especially luxury goods companies, but luxury goods will always have a market, because the rich are still rich.

Niemann Marcus said bankruptcy protection will not affect the date of re opening some stores. During the epidemic period, the group will continue to provide services to its customers on its e-commerce platform, hoping to break away from bankruptcy this autumn.

The outbreak of the new crown pneumonia epidemic has dealt a severe blow to the retail industry in the United States. On Monday, J.Crew, the famous clothing brand Michel Obama, once favored by former first lady of the United States, has also filed for bankruptcy protection. It has become the first national clothing brand to apply for bankruptcy protection since the outbreak of the US epidemic. According to the US Department of Commerce, the US real GDP dropped by 4.8% in the first quarter of this year, the largest quarterly decline since the 2008 financial crisis.