Neiman Marcus has emerged from bankruptcy.
The retailer, which was formerly known as the Neiman Marcus Group Ltd. LLC, now has a new, albeit similar, name: Neiman Marcus Holding Company Inc. It announced in a statement that it has exited voluntary Chapter 11 protection, as well as completed its restructuring process and implemented its reorganization plan.
With the full support of its creditors and new equity shareholders, the company has eliminated more than $4 billion of existing debt and upwards of $200 million of cash interest expense annually, with no near-term maturities.
“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,” said CEO Geoffroy van Raemdonck. “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.”
He added, “We emerge from Chapter 11 as a stronger, more innovative retailer, brand partner and employer.”
Neiman Marcus’ new owners — including PIMCO, Davidson Kempner Capital Management and Sixth Street — are funding a $750 million exit financing package that fully refinances its debtor-in-possession loan, plus provides significant additional liquidity for the business. What’s more, the department store chain has also secured a $125 million first-in-last-out (also known as FILO) facility to help refinance its existing debt and support its ongoing operations.
Those funds are in addition to a $900 million asset-based lending facility led by Bank of American and a consortium of commercial banks.
As part of the restructuring, Neiman Marcus has installed a new board of directors. Members include van Raemdonck; Meka Millstone-Shroff, who serves as a strategic operating advisor; Pauline Brown, most recently the chairman of North American for LVMH Moët Hennessy Louis Vuitton; Pamela Edwards, formerly the CFO of Mast Global and Victoria’s Secret divisions of L Brands; Kris Miller, who was previously the chief strategy officer for eBay; and Scott Vogel, managing member at Vogel Partners LLC.
“At the conclusion of this process, I remain profoundly impressed by the strength of Neiman Marcus and Bergdorf Goodman, the commitment of our associates, the unwavering support of our brand partners and the loyalty of our customers,” added van Raemdonck.
Neiman Marcus’ exit from bankruptcy comes a day after a spokesperson confirmed to FN that it would lay off an unspecified number of employees. This week, the Dallas-based company “began a reorganization” of the “store associate structure” at both its namesake store and Bergdorf Goodman outposts. It also shared plans to roll out new positions, including service ambassadors, digital client advisors and personal stylists at its locations.