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Neiman Marcus Emerges From Bankruptcy

Neiman Marcus Holding Co said on Friday it has completed its Chapter 11 bankruptcy protection process, emerging from one of the highest-profile retail collapses during the COVID-19 pandemic.

Its restructuring plan eliminated more than $4 billion of debt and $200 million of annual interest expense.

The luxury department store chain said it had a new board of directors, including former LVMH North America Chairman Pauline Brown and former eBay Inc Chief Strategy Officer Kris Miller.

Geoffroy van Raemdonck will continue to serve as Chief Executive Officer of Neiman Marcus Group, which had filed for bankruptcy protection in May.

The 113-year-old companys new owners, which include PIMCO, Davidson Kempner Capital Management, and Sixth Street Partners LLC are funding a $750 million exit financing package that fully refinances its debtor-in-possession loan.

Neiman Marcus filed for Chapter 11 bankruptcy protection on May 7, 2020, casting a shadow over other retailers as they remain shuttered during the coronavirus pandemic.

The move was done in “supporting continued operations during the COVID-19 pandemic and beyond,” according to the Dallas, Texas-based luxury retailer. The firm blamed the lack of revenue on the virus pandemic, saying it was on a profitable path before it unfolded.

Neiman Marcus isnt the first major department store group to file for bankruptcy during the pandemic. A growing list of mostly clothing retailers have filed for Chapter 11, including Brooks Brothers, J.C. Penney, J.Crew, and Stage Stores. These retailers were already struggling with weak sales, but the forced closure of non-essentiaRead More – Source

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