The coronavirus has led to social distancing, which has led to millions of people being out of work. Most of their purchases are now being done online. Certain retailers like Macy’s (M) have experienced a free fall in revenue. Macy’s recently hired Lazard to explore options pursuant to improving its finances:

Macy’s (NYSE:M) has hired Lazard to explore options for improving its finances after the company lost most of its revenues as it shut down all its stores as a result of Covid-19, Reuters reports.

Macy’s also has enlisted debt restructuring lawyers at Kirkland & Ellis, according to the report.

The department store operator has asked its advisers to help manage its liabilities and explore options that could include new financing, although no debt restructuring is imminent at this time.

This also comes amid bankruptcy talk at J.C. Penney. Macy’s has faced headwinds to its top line for some time. In its most recent quarter, the company’s revenue of $8.6 billion was off 1% Y/Y. Comparable sales for owned plus licensed were down 0.5% in the most recent quarter and down 0.7% for the year. Digital sales performed well, spiking 50% for full year 2019 to about $6 billion. Digital represented 26% of net sales for full year 2019, up from 23% in the year earlier period. Management has been trying to make Macy’s more efficient. It is in the process of closing 30 of the company’s least-productive stores. Over the next three years, it expects to close about 125 stores, representing about $11.4 billion in annual sales. Macy’s has a major liquidity problem. Read more:


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