The long-speculated bankruptcy of Neiman Marcus Group was confirmed by the retailer’s CEO and chairman Geoffroy van Raemdonck today. To finance the Chapter 11 bankruptcy, Neiman has attained a $675 million in debtor-in-possession loan from its creditors, who will also provide $750 million in exit financing. The company intends to eliminate $4 billion in debt in the bankruptcy process.
The Dallas based retailer was founded in 1907. They purchased Bergdorf Goodman in 1972. The e-commerce site Mytheresa, who are owned by Neiman Marucs, issued a statement today that read: “We would like to clarify that Mytheresa itself is not part of the Chapter 11 proceedings. We continue to operate as a standalone and independent business.”
Geoffroy van Raemdonck, chairman and chief executive officer of the company, said: “Prior to COVID-19, Neiman Marcus Group was making solid progress on our journey to long-term profitable and sustainable growth. We have grown our unrivaled luxury customer base, expanded our industry-leading customer relationships, achieved higher omnichannel penetration, and made meaningful strides in our transformation to become the preeminent luxury customer platform. However, like most businesses today, we are facing unprecedented disruption caused by the COVID-19 pandemic, which has placed inexorable pressure on our business.”
J.Crew filed for Chapter 11 on Monday and yesterday John Varvatos filed for bankruptcy in Delaware. JC Penney is the next retailer mulling Chapter 11 after missing an interest payment around $12 million last month.