Neiman Marcus is reportedly moving toward bankruptcy as the company sees its sales dwindle amid store closures and furloughed employees during the coronavirus pandemic.

According to sources for Reuters, the luxury department store retailer has been in talks with bondholders and lenders about financing that would allow the company to continue to operate under bankruptcy protection

The possible bankruptcy restructuring is not expected to take place for several weeks, and the company may be able to avoid filing Chapter 11 altogether if creditors give Neiman Marcus more time to make up debts, the sources said.

This is not the first time that Neiman Marcus saw itself nearing bankruptcy as last year the retailer avoided the fate by reportedly reaching a deal with its creditors. The company has $4 billion in debt that will start to come due on April 15, Reuters said.

Because of the coronavirus situation, Neiman Marcus has closed all Neiman, Bergdorf Goodman, and LastCall stores through the end of April. The company also furloughed the majority of its 14,000 employees.

NeimanMarcus The Neiman Marcus sign outside a store in Golden, Colorado on Dec. 9, 2009. Photo: Reuters/Rick Wilking