Texas' iconic department store has come through its bankruptcy proceedings, although not entirely unscathed. According to a release, Neiman Marcus has emerged from voluntary Chapter 11 protection, completing its restructuring process and reorganization plan, with new owners and a new board of directors.
The restructuring eliminated more than $4 billion of existing debt and more than $200 million of cash interest expense annually.
CEO Geoffroy van Raemdonck says in a statement that the company has emerged as a stronger, more innovative retailer, brand partner, and employer.
"With the successful implementation of our restructuring, Neiman Marcus and Bergdorf Goodman will continue to be the preeminent luxury shopping destinations for years to come," van Raemdonck says. "While the unprecedented business disruption caused by COVID-19 has presented many challenges, it has also given us the opportunity to reimagine our platform and improve our business."
Neiman Marcus filed for Chapter 11 bankruptcy in May, at which time van Raemdonck said that the driving force was the coronavirus pandemic. The luxury department store chain temporarily closed all 43 of its stores on March 18 through the end of May, including its location in the Domain.
The new owners include PIMCO, Davidson Kempner Capital Management, and Sixth Street, who are funding a $750 million exit financing package.
The newly constituted Board of Directors includes van Raemdonck, along with
- Meka Millstone-Shroff, who serves on the board of a variety of companies
- Pauline Brown, who most recently served as the Chairman of North America for LVMH Moët Hennessy Louis Vuitton
- Pamela Edwards, who most recently served as Chief Financial Officer of the Mast Global and Victoria’s Secret divisions of L Brands
- Kris Miller, who most recently served as the Chief Strategy Officer for eBay, the global e-commerce marketplace, from 2014-2020
- Scott D. Vogel, Managing Member at Vogel Partners LLC.
According to Bloomberg, the company is also reducing the size of its workforce, and began laying off workers on September 23. Some new positions will be added for customer service and personal styling.
Neiman Marcus Group is a luxury, multi-branded, omni-channel fashion retailer conducting integrated store and online operations under the Neiman Marcus, Bergdorf Goodman, Neiman Marcus Last Call, and Horchow brand names.