Neiman Marcus Group Emerges From Bankruptcy

DALLAS, TEXAS — Last March 2020, DM Fashion Book reported the Neiman Marcus Group, impacted by its heavy debt load and the coronavirus pandemic, is “evaluating all courses of action” to preserve its financial health, including a possible bankruptcy (see it here).

Neiman Marcus Group is owned by Ares Management LLC and the Canada Pension Plan Investment Board, which together bought the business for $6 billion in 2013, bringing long-term debt up to $4.46 billion.

In May 2020, we announced that the luxury retailer filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas having lined up $675 million in debtor-in-possession financing and a binding restructuring agreement with lenders holding over two-thirds of the company’s outstanding debt. The filing follows the department store’s evident liquidity troubles, as it missed interest payments on bonds (see it here).

In the latest news, it was announced that The Neiman Marcus Group, now called the Neiman Marcus Holding Co. Inc., emerged from Chapter 11 bankruptcy on Friday September 25.

Its restructuring plan eliminated more than $4 billion of debt and $200 million of annual interest expense.

The luxury department store chain said it had a new board of directors, including former LVMH North America Chairman Pauline Brown and former eBay Chief Strategy Officer Kris Miller.

Geoffroy van Raemdonck will continue to serve as chief executive officer of Neiman Marcus Holding Co. Inc.

The 113-year-old company’s new owners, which include PIMCO, Davidson Kempner Capital Management and Sixth Street Partners LLC are funding a $750 million exit financing package that fully refinances its debtor-in-possession loan.

Photos Credit: Courtesy of Neiman Marcus