NEIMAN MARCUS RECEIVES COURT APPROVAL FOR NEW FINANCING

Neiman Marcus received final approval from the U.S. Bankruptcy Court to access the next phase of $675 million in new financing to help it reorganize and start reopening stores.

The company will get access to $250 million now and $150 million more through early September. It originally received approval for $275 million when the bankruptcy was filed on May 7.

The funds provide the retailer “with ample liquidity to ensure business continuity as we gradually reopen our stores, invest in fall inventory, and fund the expansion of our digital offerings,” said Geoffroy van Raemdonck, CEO of Neiman Marcus. “We remain on track to emerge from this process in fall 2020,” he said.

Business has been strong in recent weeks, he said. The chain has operated online during the Coronavirus closings with the help of digital stylists.

So far, two stores have reopened to customers, NorthPark Center in Dallas and Lenox Square in Atlanta. About 90 percent of the 43 Neiman Marcus stores are either open by appointment or offering curbside pickup of online and phone orders. Neiman Marcus also owns Bergdorf Goodman in New York. Before its bankruptcy, the company had said that it would close more than 20 Last Call clearance stores this summer.

When the company exits bankruptcy, it will have shed $4 billion of debt from its balance sheet.