(Bloomberg) -- Neiman Marcus Group Inc. is preparing to seek bankruptcy protection as soon as this week, Reuters reported on Sunday, citing unidentified people familiar with the matter.
The U.S. department store operator is in the final stages of negotiating a loan that would amount to hundreds of millions of dollars and help bankroll some of its operations during the process.
The bankruptcy protection filing could come within days; however, the timing could change, Reuters said.
Neiman Marcus and owner Ares Management declined to comment to Reuters while representatives from its other owner, the Canada Pension Plan Investment Board, did not immediately respond to Reuters requests for comment.
Bloomberg reported late last month that the retailer held initial talks with lenders about a potential bankruptcy loan that would keep the company running while it works out a recovery plan.
The retailer was already struggling before the spread of the coronavirus in the U.S. forced it to shut its stores. Creditor Marble Ridge said on April 16 in a letter to the Neiman Marcus board that that the store operator had failed to make a $5.7 million bond payment, triggering a 30-day grace period for Neiman before a formal event of default takes effect.
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