Business

Macys Warns of up to $1 Billion Quarterly Loss Due to Lockdowns

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Macys Inc said on May 21 it could rack up operating losses of up to $1.11 billion in the first quarter, as the department store operator was forced to shut stores due to lockdowns aimed at curbing the spread of the CCP virus.

The health crisis has forced brick-and-mortar retailers to tap credit lines, lay off employees, and suspend dividends and buybacks in a bid to stay afloat amid store closures.

Just this month, several retailers, including J Crew, J.C.Penney, and luxury store chain Neiman Marcus Group filed for bankruptcy after failing to cope with market uncertainties and mounting debt.

The Neiman Marcus store
The Neiman Marcus store is seen during the outbreak of the CCP virus in New York City, on April 19, 2020. (Jeenah Moon/Reuters)

Macys, which shut all of its 775 stores on March 18 to curb the spread of the CCP (Chinese Communist Party) virus, hired investment bank Lazard Ltd to explore options for bolstering its finances, Reuters reported last month.

Despite online sales bringing some respite to retailers, Macys Chief Executive Officer Jeff Gennette said that could not offset the losses relating to store closures. Offering services, including curbside pickup, where allowed, had helped the retailer keep business alive, Gennett said.

Macys-department-store-N.Y
Macys-department-store-N.Y
Macys department store is shown with an empty parking lot at the Roosevelt Field Mall in East Garden City, N.Y., March 20, 2020.Read More – Source