Thread regarding Nordstrom layoffs

Bankruptcy after this month

I heard its true, they don't have enough cash to pay employees and will declare bankruptcy.

Then they will shut down all the full line stores and focus just online and Rack stores. Is that true?

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Post ID: @OP+16dKB1O1

9 replies (most recent on top)

Oh my. Best comment I’ve read in months here. At last, someone who knows. All the vendors do have their own channels now, don’t they? I heard of something similar with Levi-Strauss’s relationship to Macy’s.

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Post ID: @1wzr+16dKB1O1

Filing bankruptcy will shield them from lawsuits, or will make it nearly impossible to collect any rulings. I can confirm that the filing won’t be this month but definitely by 4th quarter. They are burning cash by the millions. The average store is barely making over $35K in sales a day, versus the median pre-Covid of $250K easy. More stores mall anchored stores are planned to close, especially the rest of the Lloyd doors and most of the Elmer doors. In markets with multiple stores, they will be condensed down to one store with the highest volume yield. Leadership will cease, basically to one zone leader per floor. ADMs will disappear. The performance and sustainability of Amazon is a major factor and I wouldn’t be surprised with a buy out or merge for factory/fulfillment footprints. I’m not sharing this to scare anyone, but to give you a head start on finding something else. I am floored by the decisions being made by the Chief Executives. All that will be left will be a smaller footprint of rack stores. With full line going to 90% digital business. We’re to the point that vendors don’t even want to sell to us because even they know something is amiss and that it’s cheaper to sell it on their own with a higher yield on net sales.

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Post ID: @1yjs+16dKB1O1

What will happen to all of these employees with open lawsuits if the company declares bankruptcy? Thinks

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Post ID: @1sev+16dKB1O1

If cash is so tight, and the wolf is at the door, then why are they hiring like crazy again?
https://careers.nordstrom.com

Lots of supply chain and security spots, many others. Strange ones like this:
https://nordstrom.wd5.myworkdayjobs.com/en-US/nordstrom_careers/job/Seattle-WA/Principal-Engineer_R-206052

So they want to hire a Principal engineer, with no specifics, even area of concern?

What is going on? Are good eggs jumping ship again?

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Post ID: @rol+16dKB1O1

That makes sense. Just as "the very hairs of your head are all numbered", all the stores and lease terms are itemized and stack-ranked, as are the employees themselves.

Management has to wargame all of this so they can respond to market conditions quickly. There is just no room for error or delay.

Google for "next Nordstrom earnings",

"Nordstrom has not formally confirmed its next earnings publication date, but the company's estimated earnings date is Wednesday, August 19th, 2020 based off prior year's report dates."

So maybe in 3 weeks for next earns, right at the start of the delayed Anniversary Sale, which I eagerly await, to shop and to lunch. Maybe get a drink at the – aw, heck, is Habitant still closed? I'm so thirsty.

Next earnings, maybe we will hear a little about the DEFCON levels for triaging the BAM. It's insane how fast we are moving now, just nuts.

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Post ID: @erg+16dKB1O1

Yes, there is a ppt I saw which has the trajectory of store closures. It’s in phases. The ppt is not shared below director level. Leadership did a “what if” and the ppt captures those scenarios.

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Post ID: @dtp+16dKB1O1

What’s the monthly burn on the $1.3B of (borrowed) cash-on-hand?

Chapter 11 is possible by EOY if business doesn’t improve and they need to ditch liabilities quickly.

But even that gives them one more shot as an e-tailer with a short list of stores, maybe.

How is the Nordstrom Local concept working so far? And how are BevyUp and MessageYes?

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Post ID: @men+16dKB1O1

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