Neiman Marcus filed for bankruptcy in the Southern District of Texas Thursday, as the Coronavirus pandemic continues to batter the retail industry.
The famed luxury department store said $675 million in financing has been secured from creditors to fund operations through bankruptcy this fall. Neiman’s creditors also committed to a financing package of $750 million to refinance that financing and provide additional liquidity once it exits bankruptcy, which it plans to do this fall.
Once the company emerges from bankruptcy, the creditors will become the majority owners in the longtime luxury brand. Neiman Marcus did not announce any store closings.
The company did note that Mytheresa is not a part of the Chapter 11 proceedings and will continue to operate independently.
“The binding agreement from our creditors gives us additional liquidity to operate the business during the pandemic and the financial flexibility to accelerate our transformation,” said Geoffroy van Raemdonck, chairman and chief executive officer of Neiman Marcus Group. “We will emerge a far stronger company. In a world that is changing, we are uniquely positioned to give our brand partners access to our loyal luxury customers like no other company. We will deliver that through the strength of our associate relationships and digital solutions.”
The company said it will reopen stores as it is safe to do so based on the status of the pandemic and that “the Chapter 11 process will not impact the timing of store re-openings.”
Temporary closures of some Neiman Marcus, Bergdorf Goodman, and Last Call stores have been extended through May 31st, and furloughs or temporary salary reductions have been put into effect for a large portion of associates through at least May 31st with the potential to either extend or shorten based on COVID-19 developments.
Meanwhile, the company’s digital storefronts remain open and are serving customers on their Neiman Marcus and Bergdorf Goodman websites and apps.
The company said a total of 10 stores nationwide are now open for curbside pickup, including all Texas Neiman Marcus stores, as well as locations in Tampa, Las Vegas, and Tysons Corner. On May 4th, the Atlanta and NorthPark Neiman Marcus stores became available to customers by private appointment.