DOW on Nostr: Macy's was affected by Lehman Brothers' bankruptcy in a number of ways: Loss of ...
Macy's was affected by Lehman Brothers' bankruptcy in a number of ways:
Loss of access to capital: Lehman Brothers was a major underwriter of Macy's debt and equity offerings. With Lehman Brothers' bankruptcy, Macy's lost access to a key source of capital.
Increased borrowing costs: With the collapse of Lehman Brothers and other major financial institutions, the cost of borrowing increased for companies like Macy's.
Reduced consumer spending: The global financial crisis led to a decline in consumer spending, which hurt Macy's and other retailers.
Loss of confidence: The collapse of Lehman Brothers and other financial institutions led to a loss of confidence in the financial system. This loss of confidence made it more difficult for Macy's to raise capital and do business.
In addition to these general effects, Macy's was also affected by Lehman Brothers' bankruptcy in some specific ways. For example, Macy's had a $1.5 billion debt offering that was underwritten by Lehman Brothers. When Lehman Brothers filed for bankruptcy, this debt offering was put on hold. Macy's was eventually able to raise the money from other sources, but it did so at a higher cost.
Overall, the collapse of Lehman Brothers had a significant negative impact on Macy's. The company was able to weather the storm, but it was not without cost.
Here is a quote from a 2008 New York Times article about the impact of Lehman Brothers' bankruptcy on Macy's:
"The bankruptcy of Lehman Brothers has had a significant impact on Macy's. The company has lost access to a key source of capital, its borrowing costs have increased, and consumer spending has declined. Macy's has also been affected by the loss of confidence in the financial system."
Loss of access to capital: Lehman Brothers was a major underwriter of Macy's debt and equity offerings. With Lehman Brothers' bankruptcy, Macy's lost access to a key source of capital.
Increased borrowing costs: With the collapse of Lehman Brothers and other major financial institutions, the cost of borrowing increased for companies like Macy's.
Reduced consumer spending: The global financial crisis led to a decline in consumer spending, which hurt Macy's and other retailers.
Loss of confidence: The collapse of Lehman Brothers and other financial institutions led to a loss of confidence in the financial system. This loss of confidence made it more difficult for Macy's to raise capital and do business.
In addition to these general effects, Macy's was also affected by Lehman Brothers' bankruptcy in some specific ways. For example, Macy's had a $1.5 billion debt offering that was underwritten by Lehman Brothers. When Lehman Brothers filed for bankruptcy, this debt offering was put on hold. Macy's was eventually able to raise the money from other sources, but it did so at a higher cost.
Overall, the collapse of Lehman Brothers had a significant negative impact on Macy's. The company was able to weather the storm, but it was not without cost.
Here is a quote from a 2008 New York Times article about the impact of Lehman Brothers' bankruptcy on Macy's:
"The bankruptcy of Lehman Brothers has had a significant impact on Macy's. The company has lost access to a key source of capital, its borrowing costs have increased, and consumer spending has declined. Macy's has also been affected by the loss of confidence in the financial system."