American way rescue: Neiman Marcus out of Chapter 11

American way rescue: Neiman Marcus out of Chapter 11

Neiman Marcus is out of Chapter 11. For the records, the brand has gone out of it by wearing a brand-new dress. They had filed for bankruptcy protection last May. Four months later, they have emerged again, back onto the market with a new name, a new ownership and a new Board of Directors. And fewer debts as well. Yet, they were compelled to reduce the number of employees.

Neiman Marcus out of Chapter 11

The former name of the company was Neiman Marcus Group Ltd. LLC. Now, instead, the new name of the business is Neiman Marcus Holding Company Inc. The court approved the reorganization and restructuring plan submitted by the company, which is now controlled by its creditors. For example, Pimco, Davidson Kempner Capital Management and Sixth Street, among others. Thanks to its reorganization, the company has now reduced its debts by 4 billion US dollars compared to four months ago. Furthermore, the new owners have allocated 750 million dollars more to implement a refinancing plan which “is due to supply the business activity with additional remarkable cash assets”, they pointed out in a press release.

Fewer employees

The American retailer, headquartered in Dallas, currently runs a commercial network made of 43 selling stores. Besides that, they also control Bergdorf Goodman. Yet, while making public the news about their leaving Chapter 11, a spokesperson of the company confirmed, during an interview given to Footwear News, that the group laid off an unspecified number of employees. Such step, supposedly, is part of the business reorganization and revamp plan. Neiman Marcus also works with Mytheresa e-commerce, which was not involved in bankruptcy though.

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