Neiman Marcus Group recently announced that they are on track to emerge from bankruptcy by this fall. The luxury fashion retailer received approval from the U.S. Bankruptcy Court for the Southern District of Texas for immediate financing of $250 million, and an additional $150 million if needed in September.
Neiman Marcus became the first American department store to go bankrupt amidst the pandemic. The retailer filed for Chapter 11 bankruptcy in early May after prolonged store closures caused a massive decline in sales, making it nearly impossible to pay on loans.
The debtor-in-possession funds will allow the business to continue with reopening plans and invest in their future growth as they emerge from the COVID-19 lockdown. This debt relief is crucial to ensure Neiman Marcus’ long-term survival. The retailer is known for their omnichannel capabilities, including e-commerce, a modest physical footprint and an overall healthy brand.
“This financing provides us with ample liquidity to ensure business continuity as we gradually reopen our stores, invest in Fall inventory, and fund the expansion of our digital offerings as we continue our journey to become the preeminent luxury customer platform. Importantly, we remain on track to emerge from this process in Fall 2020,” said Chief Executive Officer, Geoffroy van Raemdonck.
Currently, 90% of Neiman Marcus physical stores are open for either curbside, private appointment or full shopping.
“Our business performance in recent weeks has been strong thanks to the success of our omnichannel experience. With our digital stylists and remote selling capabilities, our associates have continued to engage with and support customers anytime, anywhere, driving significant sales even while remote. This would not be possible without the support of our lenders, brand partners, and our dedicated associates,” said Raemdonck.
Source: Neiman Marcus Receives Relief – PR Newswire 6/16/20, Neiman Marcus Files Bankruptcy – Forbes
Photo Credit: Retail Insider
About Neiman Marcus Group
Neiman Marcus Group is a luxury, multi-branded, omni-channel fashion retailer conducting integrated store and online operations under the Neiman Marcus, Bergdorf Goodman, Neiman Marcus Last Call, and Horchow brand names. For more information, visit http://www.neimanmarcusgroup.com.