Neiman Marcus Exits Bankruptcy, Looks to Reimagine Business

Serving as an unexpected light in the retail crisis brought on by the Covid-19 virus pandemic, Neiman Marcus has officially come out of Chapter 11 bankruptcy. According to reports, the luxury department store has cleared a sizeable amount of debts and has brought on new owners to reimagine its business.

Neiman Marcus has officially come out of bankruptcy, a process that left the upscale department store with a lighter debt load and new owners to confront the same industry trends that led to its financial woes.

The Ares Management Corp. and Canadian Pension Plan Investment Board have now sold their stakes in Neiman Marcus Holding Company Inc. to Pacific Investment Management Co., Davidson Kempner Capital Management and Sixth Street Partners. Accompanying the change of owners is new board comprised of six members including, Pauline Brown, the former chairman of North America for LVMH Moët Hennessy Louis Vuitton SE, and Kris Miller, the former chief strategy officer at eBay.

Under new management and board, the retailer eliminated more than $4 billion USD of existing debt and now looks to combat the continuing challenges that put it into bankruptcy. The new owners have also prepared a $750 million USD exit package that will go towards refinancing a loan and bring much needed liquidity to the business.

With the financial cleanup completed, Neiman Marcus and its Bergdorf Goodman store still must deal with the pandemic’s fallout, shopper defections to online merchants and a preference among younger customers for experiences instead of objects.

The current environment for a fashion luxury retailer isn’t ideal. The company was hit particularly hard by the pandemic. The Neiman Marcus Group temporarily closed its 43 Neiman Marcus and two Bergdorf Goodman stores nationwide in compliance with guidelines set by the Centers for Disease Control and Prevention in response to the Covid-19 pandemic, although 31 locations have gradually started to reopen. The company filed for court protection in May.

The new owners “understand the value of our brands and the opportunity for growth”, said a Geoffroy van Raemdonck, the chief executive officer who kept his position during the bankruptcy process and will now lead the turnaround effort.

Some of Neiman’s creditors and retail peers couldn’t say the same. Lord & Taylor has been running going-out-of-business sales, and Stein Mart Inc. is being dismantled. Marble Ridge Capital, a creditor that peppered Neiman Marcus with objections to its debt maneuvers before and after the bankruptcy filing, is being wound down after co-founder Dan Kamensky’s tactics drew criminal charges.

“While the unprecedented business disruption caused by Covid-19 has presented many challenges, it has also given us the opportunity to reimagine our platform and improve our business”, said van Raemdonck. “We emerge from Chapter 11 as a stronger, more innovative retailer, brand partner, and employer”.

The Neiman Marcus Group runs 43 Neiman’s stores and two Bergdorf Goodman stores, as well as an online business that includes neimanmarcus.com, bergdorfgoodman.com, and the Mytheresa luxury web site.

Auteur: amr63

Yakymour, home of Begum Om Habibeh Aga Khan, thè place in the mid 50's 'till the late 80's, where fashion, art, beauty and love meet each other, from all over the world.... Playing as a child in the garden of Yakymour was a happy, innocent time, thanx to ‘Grandma’ Yaky and to Sadruddin, where I could be fully myself and forget ‘the bad things’, and get some strenght. The Last 30 years working as cosmetologist and as a make-up artist for television, theatre, film, fotoshoots, fashion shows, celebrities and individuals gave me a trunk full of experience. My work brought me all over the world and had photoshoot's on location in the Netherlands, Germany, Belgium, France, Jordan, Syria, Lebanon, India a.o. At this Blog you will find many reviews of cosmetics, fashion, art, and everything beautiful, as an ode to Begum Om Habibeh 'Yaky' Aga Khan, and named after the place where 'everything' was beautiful: Yakymour. You will find here all the in and outs about skincare, perfums, and make-up, the do's and don'ts, the why's and how's.... The stories behind, and some great interviews... So when you have any question.... please ask. Come on in.... feel yourself at home at Yakymour! Jean Amr P.S. My apologies for future grammatical errors. English is not my mother language :)

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