Macy's Reportedly Enlists Help of Investment Bank to Firm Up Finances
Struggling department store chain Macy's (NYSE: M) is seeking expert help, according to reporting from Reuters on Monday. The news source suggests Macy's has hired investment bank Lazard to help it remain fiscally intact while all of its stores are closed due to the coronavirus outbreak.
Reuters cited "people familiar with the matter" without specifically naming anyone to verify the claim, although the headline is more than plausible. Even before COVID-19 spurred shutdowns of non-essential commerce in the United States, the company was backpedaling. Last year's top line fell 1.6%, prompting the decision to close up to another 125 stores over the next three years. Late last month the retailer also drew on all of an existing $1.5 billion credit facility. But, with nearly $1 billion worth of debt coming due before early 2022 and little assurance of consumers flocking back once stores are reopened, future liquidity is a grave concern. Cowen & Co. believes Macy's has less than six months' worth of cash at its disposal without dramatic changes for the better.
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Source Fool.com
