Neiman Marcus (Neiman Marcus Group) is the premier destination for luxury fashion and unparalleled service. For more than a century Neiman Marcus has transformed and elevated the shopping experience, becoming a leading purveyor of the world’s most unique luxury goods.
The luxury retailer Neiman Marcus began its long-anticipated bankruptcy proceedings due to the Covid-19 shutdown, and ‘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 reaching a restructuring support agreement with a majority of its lenders’,” WWD announced. The company plans to eliminate $4 billion in debt in the bankruptcy process.
Prior to COVID-19, Neiman Marcus Group was making solid progress on our journey to long-term profitable and sustainable growth. We have grown our unrivaled luxury customer base, expanded our industry-leading customer relationships, achieved higher omni-channel penetration, and made meaningful strides in our transformation to become the preeminent luxury customer platform. However, like most businesses today, we are facing unprecedented disruption caused by the COVID-19 pandemic, which has placed inexorable pressure on our business.
Geoffroy van Raemdonck, chairman and chief executive officer
The filing helps the company to lift its crushing debt load, which has been as issue that has loomed for years, but the road ahead through the COVID-19 crisis is still extremely uncertain for Neiman Marcus and the rest of retail.
After the pandemic is over, reopening stores will likely take time and resources to make sure it’s safe to shop at stores, while there are no guarantees that the costumers will come back when stores do open. Shoppers may feel hesitant from a health point of view, or they may have been negatively impacted financially, which will hurt the luxury retail segment first and foremost.