CORRECTION (2:36) Though the Post has yet to correct its story, Neiman’s PR firm emailed to say the story is way off. The PR firm sent along the following statement, attributable to a company spokesperson: “A recently published article inaccurately reported information about Neiman Marcus Group and Coface, a leading trade credit firm. To be clear the story is factually incorrect. Coface continues to support multiple brands in the Neiman Marcus and Bergdorf Goodman family. We are well positioned for the upcoming holiday season and beyond. Neiman Marcus Group continues to make progress on our transformation into a luxury customer platform with a focus on profitable and sustainable growth.”
A business-minded FrontBurnervian points us to the news that an important company has lost faith in Neiman Marcus. When expensive merchandise gets sent to a Neiman’s, a company called Coface insures those shipments — except not any longer. From the New York Post:
Coface, one of the three industry’s largest trade-credit insurers, has stopped insuring Neiman Marcus’ inventory receivables — a move that could force some brands to stop doing business with Neiman in the coming weeks, sources said.
“When an insurer says they won’t cover your store that’s a very bad sign,” said Richard Kestenbaum, a partner at Triangle Capital. “It means that an insurer who is an expert in evaluating risk in retail doesn’t think you’re worth the risk and that’s a disturbing indicator.”
Maybe get a last popover before it’s too late?