How the mighty have fallen — on hard times.
Neiman Marcus reportedly may vacate its fashionable year-old digs at the Shops at Hudson Yards in New York City, as its landlord is shopping it to potential tenants as office space.
Related Companies and Oxford Properties, developers of the upscale megamall on Manhattan’s West Side, are said to be marketing other retail space in the mall as well, according to the New York Post.
The COVID-19 recession is causing a major shakeout in retail, with Neiman Marcus being one of the big ones to enter bankruptcy court. It may shutter the Manhattan store entirely.
As previously reported, Neiman Marcus has received court permission to gain access to $675 million in debtor-in-possession financing from creditors, which allows the retailer to continue to operate and keep paying staff members.
Meawhile, the coronavirus crisis has pushed more consumers to online shopping.
A recent PYMNTS study conducted over a 12-week period found that of the 48.2 percent of consumers who have shifted more of their shopping online, 85.7 percent of them say they’ll stick with those experiences. The study concludes that “the spike in eCommerce is likely here to stay, even post-pandemic.”
Neiman Marcus told the Post that its “restructuring plan is focused on alleviating our debt load, not mass store closures.” That did not rule out the option of its store exiting Manhattan’s Hudson Yards.
The retailer added, “Currently, we have 13 stores open and intend to open seven more this week, and more in the coming weeks as local and state mandates allow and as we feel it is safe to do so.”
All told, the developers, who reportedly spent $80 million to build out the Hudson Yards, may be looking to cut 40 percent of its square footage.
According to a Post source, the developers are studying other potential uses for the department store space, which spans the fifth to seventh floors.