Has Neiman Marcus Lost Its Luster After Bankruptcy Redemption?
Has Neiman Marcus Lost Its Luster After Bankruptcy Redemption?
Neiman just recently came out of bankruptcy.
Neiman Marcus Wikipedia
High end department store chain Neiman Marcus just got out of bankruptcy. But having been in bankruptcy may have cost it the coveted status as retailer for high end goods. The New York Post has reported on how luxury brands such as Gucci seem to have cut ties with Neiman Marcus.
The Post pointed to the fact that Gucci items are no longer offered on the Neiman Marcus website and only a few of its stores have any Gucci items on their shelves. Apparently vendors are still smarting over unpaid bills so they do not want to continue doing business with the company. The unpaid debts come as the new Neiman Chief Executive Geoffroy van Raemdonck is seen as spending a lot on himself.
In a statement Neiman said, “We have excellent and longstanding relationships with all our brands and any insinuation that this is not the case is categorically false. We’ve retained all of our top 50 brands.”
Neiman declared bankruptcy in May 2020. It came out of chapter 11 the following fall. The company was able to restructure $4 billion of debt with its creditors.
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New day, new dress… #NeimanMarcus https://t.co/ghgk45xBAG pic.twitter.com/kgUcIK0Iia
— Neiman Marcus (@neimanmarcus) April 11, 2021
At the end of March Neiman Marcus announced that the company had completed refinancing of a substantial portion of its exit facilities with an aggregate principal amount of $1.1 billion of new 7.125% senior secured notes due 2026 issued by NMG Holding Company, Inc., a Delaware corporation, and The Neiman Marcus Group LLC, a Delaware limited liability company. The transaction, initially sized at $1 billion, was increased to $1.1 billion in response to demand from institutional investors.
“This refinancing validates the momentum we are seeing as we continue to execute on our strategic transformation plan amidst improved market conditions,” said Brandy Richardson, Executive Vice President and Chief Financial Officer, Neiman Marcus Group. “Confidence from our investors is reflected in final pricing terms and the size of the offering. We have additional financial flexibility as we invest in our supply chain, elevate our digital excellence and deliver unparalleled luxury experiences.”
Read more about: Gucci, Neiman Marcus
