Neiman Marcus Group to Emerge From Chapter 11 Bankruptcy by Sept. 30
Neiman Marcus Group announced last week that it expects to emerge from Chapter 11 bankruptcy by Sept. 30 under a restructuring plan that's likely to eliminate more than $4 billion of its debt and more than $200 million of interest expense. The upscale retail chain said certain institutional investors will fund a $750 million exit financing package. The Bankruptcy Court for the Southern District of Texas, Houston Division, approved Neiman Marcus’ reorganization plan.
"This is an important milestone in our Chapter 11 process and an exciting day for the future of our company, as it sets the stage for our emergence," Geoffroy van Raemdonck, chairman and CEO of Neiman Marcus Group said. "Even in a continually evolving retail environment, we continue to succeed and exceed our budget."
Total Retail's Take: This is certainly positive news for Neiman Marcus, which filed for bankruptcy protection in May. The bankruptcy filing was one of the highest profile of the many during the COVID-19 pandemic, and Neiman Marcus' emergence from bankruptcy is giving hope to many retailers in similar situations. More good news on this front was also announced recently: Clothing company J.Crew Group said last month it expects to emerge from Chapter 11 in early September after a bankruptcy court accepted its restructuring plan. The plan was approved by a Virginia federal court, and will equitize over $1.6 billion of secured debt, and provide for $400 million in asset-based loan as well as $400 million of fresh financial aid. J.Crew filed for bankruptcy on May 4.