Macy's Inc. (M) is looking to raise as much as $5 billion in debt in an effort to avoid bankruptcy due to the coronavirus shutdown, CNBC reported Tuesday night ( ). CNBC said the nation's largest department-store chain would use its inventory as $3 billion in collateral, with another $1 billion to $2 billion in collateral coming from its real estate. Sources told CNBC that bankruptcy is not a focus at this time. Retailers are being hard hit by the economic shutdown, and last week Cowen analysts estimated Macy's had only about four months of cash available ( ). Bloomberg News also reported last week that Macy's was seeking to raise cash ( ) through a debt sale backed by real estate. Macy's has furloughed most of its staff ( ), and is losing its CFO ( ) after less than two years. Macy's shares are down 69% year to date, compared to the S&P 500's 15% loss. Ongoing losses have also dropped the retailer from the S&P 500 ( ), as it joined the S&P SmallCap 600 earlier this month.
-Mike Murphy; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
April 21, 2020 21:00 ET (01:00 GMT)
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