Neiman Marcus now has something in common with Sears Holdings.
The luxury retailer on Thursday got downgraded by Standard & Poor’s to CCC+ from a B-. The ratings agency also has Sears in the C category — a “junk” rating that signals risk the company is in danger of falling into bankruptcy.
Neiman’s ability to generate sales growth has “deteriorated,” S&P noted, while also pointing to the department-store industry as one of the most challenged sectors.
“We have a negative outlook for all of the department stores,” said S&P credit analyst, Helena Song.
Dallas-based Neiman’s “capital structure is unsustainable over the long term,” with weak mall traffic and a highly promotional retail environment exacerbating its chances of recovering, according to S&P.
Our editors found this article on this site using Google and regenerated it for our readers.
