Neiman Bond Pain Points To More Sinkholes
It’s been a bad couple of months for Neiman Marcus.The luxury department store reported plummeting sales and a bigger loss than analysts expected. It then scrapped plans for an initial public offering. Meanwhile, it has a higher amount of debt relative to earnings than its competitors, has a low credit rating and relatively little real estate to sell in a pinch.So it’s not surprising that the company’s bonds have been losing value. But the already beaten-up Neiman Marcus notes plunged substantially further on Monday without an obvious explanation. While prices on bonds maturing in 2021 had dropped more than 19 percent from Dec. 12 through Friday, they fell an additional 6.7 percent on Monday for the biggest one-day loss in more than a year. Read more at Bloomberg.
