Macy's Inc has hired investment bank Lazard Ltd to explore options for bolstering its finances after the department store operator lost most of its revenue as it shut down all its stores as a result of the coronavirus outbreak, people familiar with the matter said.
Macy's has asked its advisers to help manage its liabilities and explore options that could include new financing, the sources said, adding that no debt restructuring is imminent.A spokeswoman for Macy's said in a statement that the company is"exploring numerous options to strengthen our capital structure," adding that it maintains relationships with a range of advisers.
Macy's decision to explore new financing, among other options, makes it the latest U.S. retailer to do so. On Thursday, rival Nordstrom Inc raised US$600 million by placing real estate assets that included five stores, six distribution centers and its Seattle headquarters in a separate company and borrowing against it by issuing bonds.
It is unclear when Macy's and other department store chains will be able to re-open their stores. Credit ratings firm Fitch Ratings Inc said earlier this month that it expected Macy's revenue to plunge nearly 25per cent this year. The Cincinnati, Ohio-based company's shares have tumbled more than 60per cent since the start of this year, giving the retailer a market capitalization of roughly US$2 billion.
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