Neiman Marcus Group emerges from Chapter 11 bankruptcy
Neiman Marcus Group has emerged from Chapter 11 bankruptcy, resurfacing after initially filing in the heat of the Covid-19 pandemic back in May.
The 113-year-old retail company, which also operates Bergdorf Goodman, announced that it has eliminated over $4 billion of its existing debt and more than $200 million of cash interest expense annually through its restructuring plan. Its new owners include PIMCO, Davidson Kempner Capital Management, and Sixth Street.
At the time of the initial bankruptcy filing, the company was struggling under $5 billion in debt.
The company also announced a newly formed board of directors, including Pauline Brown, former chairman of North America for LVMH; Pamela Edwards, former chief financial officer of the Mast Global and Victoria's Secret divisions of L Brands; and Kris Miller, former chief strategy officer of Ebay, among others.
Geoffroy van Raemdonck will continue to serve as the company's chief executive officer.
“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 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. We emerge from Chapter 11 as a stronger, more innovative retailer, brand partner, and employer."
Neiman's new owners are funding a $750 million exit financing package that fully refinances the debtor-in-possession loan. In addition, the company said it has secured a $125 million FILO facility led by Pathlight, the proceeds of which refinance existing debt and will provide liquidity to support the company’s ongoing operations and strategic initiatives.
The exit Term Loan financing and FILO facility are in addition to the liquidity provided by the $900 million ABL led by Bank of America and a consortium of commercial banks, the company said.
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