It's no question that retailers and hotels are getting hit the hardest by COVID-19 economic impact. We had been hearing of struggling retailers even before the virus hit. Now that it has:
Neiman Marcus: Plans to file for bankruptcy immediately. Their hope is to restructure their $5-billion of debt in exchange for ownership and a $600M loan from their creditors. A group of investors in the company plan to challenge this deal as they prefer to sell. Neiman had missed a week of payments before entering April which it owes $120M for the month. Hudson’s Bay Company, the parent company of Saks Fifth Avenue, has emerged as a potential buyer. Saks has attempted to acquire Neiman three times in the past decade without success. Neiman Marcus’ pending bankruptcy could be a devastating blow for Related and Oxford Properties’ Hudson Yards mall. This is where Neiman's glorious new flagship resides spanning 188,000sf over 3 floors. It could force the owners to renegotiate the company’s lease and have conversations with retailers that have lease agreements linked to Neiman’s presence in the mall.
JC Penny: Next up in bankruptcy discussions ---> JC Penny. They're looking to restructure $1B in debt and has entered into a 30-day grace period with Wells Fargo, Bank of America and JPMorgan Chase after missing an April 15 payment.