On Friday, the Dallas, Texas-based luxury Department Store Chain Neiman Marcus Holding Co. had said in a statement that it had completed its Chapter 11 bankruptcy process, marking up a breakthrough move that has witnessed an emergence of one of the highest-profile US retailers from the pandemic-induced fiscal slump.
Aside from that, according to the Neiman Marcus announcement released late on Friday, the restructuring plan of the American Chain of luxury departmental stores having holdings in 47 locations across the United States, had rubbed out roughly $4 billion in debts alongside $200 million in annual interest expenses.
More importantly, the luxury store chain, which had filed for a Chapter 11 bankruptcy protection back in the May this year, had also been quoted saying that it had structured a new board of directors that included the French luxury fashion retailer LVMH’s former North American Chair Pauline Brown alongside the former eBay Inc.
Chief Strategy Officer Kris Miller, while the company’s existing Chief Executive Geoffroy van Raemdonck would continue to pursue his role as the CEO of Neiman Marcus Group.
Neiman Marcus emerges from bankruptcy as US economy regains footings
Apart from that, Neiman Marcus’ emergence from the pandemic driven bankruptcy, which had also forced the luxury department store chain to shutter down 22 of its locations in the United States, came against the backdrop of the fastest US recovery from a recession since 1930s, while during a testimony to a US Senate panel regarding the outlook of the United States’ economic recovery last week, the Federal Reserve Chair Powell alongside US Treasury Secretary Steven Mnuchin had expressed cautious optimism over the recent gains in US economic activities, however the officials had also urged for further federal stimulus.
Nonetheless, followed by a havoc-scale revamp of the luxury US departmental store, the 113-year old Neiman Marcus Holding Co. would have new owners including PIMCO, Sixth Street Partners LLC and Davidson Kempner Capital Management, while the aforementioned stakeholders in Neiman Marcus had been financing a $750 million exit deal that would fully fund the group’s debtor-in-possession loan, an amount that a bankrupted firm could borrow in order to continue its operation during the restructuring process following a bankruptcy filing, said the group at its Friday’s statement.