Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We use cookies to personalise your experience; learn more in our Privacy and Cookie Policy. You can opt out of some cookies by adjusting your browser settings; see the cookie policy for details. By using this site, you agree to our use of cookies.

Neiman Marcus files for bankruptcy protection

US department store chain, Neiman Marcus, has filed for Chapter 11 bankruptcy protection as a result of the ongoing coronavirus pandemic. 

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

Chairman and chief executive Geoffroy van Raemdonck said prior to the Covid-19 outbreak the group “was making solid progress on our journey to long-term profitable and sustainable growth.” 

He added: “However, like most businesses today, we are facing unprecedented disruption caused by the Covid-19 pandemic, which has placed inexorable pressure on our business.”

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

The creditors will become majority owners of the company.

Neiman Marcus expects to eliminate $4bn of debt.

The business has furloughed, or temporarily reduced the salaries of, a “large proportion of associates” until at least 31 May. 

It has said it will continue to assess store closure decisions and will reopen stores as it is safe to do so. 


Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.