Neiman Marcus files for bankruptcy protection | News

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

Chairman and main executive Geoffroy van Raemdonck claimed prior to the Covid-19 outbreak the group “was producing good progress on our journey to prolonged-term rewarding and sustainable advancement.” 

He included: “However, like most enterprises today, we are struggling with unparalleled disruption brought on by the Covid-19 pandemic, which has placed inexorable pressure on our business.”

The retailer has secured $675m in funding from collectors as element of a money restructuring agreement. It has also secured a further $750m it hopes will finance its exit from individual bankruptcy proceedings by “early slide.”

The collectors will become vast majority homeowners of the enterprise.

Neiman Marcus expects to reduce $4bn of financial debt.

The business has furloughed, or briefly diminished the salaries of, a “large proportion of associates” right until at least 31 May perhaps. 

It has claimed it will proceed to assess shop closure decisions and will reopen shops as it is risk-free to do so.