Macy’s Might Consider Debt Versus Bankruptcy

Macy’s, the country’s largest department-store chain, with five locations in the Kansas City area, might reportedly consider taking on up to $5 billion in debt instead of filing for bankruptcy.

Inventory would be used as collateral to raise $3 billion of the total, and its real could bring another $1 billion to $2 billion, according to CNBC. 

Macy’s, and other retailers considered non-essential are facing difficulties due to stay-at-home orders around much of the country, including Kansas and Missouri, which have forced them to shut their doors.

It’s a one-two punch for Macy’s which was already struggling due to lagging sales in a tough retail environment increasingly challenged by e-commerce. The department-store chain announced at the beginning of the year that it is closing its long-time Prairie Village location.