Neiman Marcus files for bankruptcy protection | News

The chain will not liquidate, but expects to emerge from a restructuring later on this yr. 

Chairman and chief government Geoffroy van Raemdonck stated prior to the Covid-19 outbreak the group “was making solid progress on our journey to long-term worthwhile and sustainable expansion.” 

He included: “However, like most businesses these days, we are struggling with unprecedented disruption prompted by the Covid-19 pandemic, which has positioned inexorable stress on our business.”

The retailer has secured $675m in financing from lenders as aspect of a fiscal restructuring agreement. It has also secured a further $750m it hopes will finance its exit from personal bankruptcy proceedings by “early fall.”

The lenders will develop into bulk homeowners of the company.

Neiman Marcus expects to eradicate $4bn of debt.

The business has furloughed, or briefly minimized the salaries of, a “large proportion of associates” until eventually at least 31 Might. 

It has stated it will proceed to assess retail store closure conclusions and will reopen suppliers as it is secure to do so.