An investor group that comprises investment firm Mudrick Capital Management and Daniel Loeb’s hedge fund Third Point plans to challenge a $600 million financing package that Neiman Marcus Group has lined up for its looming bankruptcy, and will push the department store operator to sell itself, people familiar with the matter said on April 26.
Neiman Marcus is preparing to seek bankruptcy protection in a Dallas federal court as soon as Monday, the sources said. The debt-laden company’s sales all but evaporated after the CCP virus outbreak forced it to temporarily shut all 43 of its Neiman Marcus locations, roughly two dozen Last Call stores and its two Bergdorf Goodman stores in New York. The location and timing of the bankruptcy filing had not been finalized as of Sunday, the sources cautioned.
