Bankrupt Neiman Marcus Officially Shuts Down

When Neiman Marcus opened a store in Bellevue in 2009, many locals were skeptical that a shop specializing in four-figure cocktail dresses and handbags could survive the Great Recession. But while the upscale scale retailer proved its skeptics wrong in that recession, it isn’t so lucky this time.

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.

Just 16 months ago, Neiman Marcus rolled out the red carpet to debut its 188,000 sq.-ft. store at Hudson Yards mall, the ambitious retail project on the West Side of Manhattan. Now after much speculation, the bankrupt retailer has confirmed it will exit the location as part of its Chapter 11 bankruptcy restructuring.

The Neiman Marcus Group is just one of many major retailers being severely impacted by the Covid-19 virus pandamic, joining the growing list of brands filing for bankruptcy. Prior to the outbreak, there was speculation that the company, which is behind Neiman Marcus, Bergdorf Goodman, Mytheresa, Last Call, and Horchow, was the next retailer to file for bankruptcy because of its $4 billion in long-term debt. The COVID-19 pandemic has created an additional struggle for the retailer, as its stores have been closed since March.

The 113-year-old retailer follows several other fashion brands that have succumbed to the pressures of the pandemic and filed for bankruptcy over the last few months, including J. Crew, J.C. Penny, Centric Brands and True Religion, among others.

The Neiman Marcus Group temporarily closed its 43 Neiman Marcus and two Bergdorf Goodman stores nationwide in compliance with guidelines set by the Centers for Disease Control and Prevention in response to the COVID-19 pandemic. It has since reopened 31 stores for customer traffic.

Court documents indicate the retailer is closing four Neiman Marcus locations, including its recently opened 188,000 square-foot location at Hudson Yards, as well as its Bellevue, Wash., Palm Beach, Fla. And Fort Lauderdale, Fla. locations. It has also closed 17 out of 22 Last Call outlets. Sources indicate that Neiman Marcus may also close its doors in Dallas, St. Louis, Natick, Mass. and Westchester, N.Y. The company is also closing two of its distribution centers in Longview and Las Colinas, Tex.

Several factors contributed to Neiman Marcus’ bankruptcy. The COVID-19 pandemic has strained the company’s operations because of its temporary store closures nationwide. The company also furloughed roughly one-third of its 13.700 employees as a result of those closures. Neiman Marcus plans on having a reorganization plan confirmed by early September.

The Corona virus pandemic has also a big inpact on the bankruptcy proceedings. One impact of the COVID-19 pandemic on the bankruptcy proceedings is that the Neiman Marcus Group cannot liquidate the business while stores remain temporarily closed. It also may be more difficult to negotiate debtor-in-possession financing to keep the business running during the pandemic.

Partly for political reasons, and the decisions that have been made, the Covid 19 pandamic is not over yet. Its far from over, especially in some of Neiman Marcus’ ‘cities’. So lets think about the loyal 13.700+ employees in this véry difficult times.

 

 

 

 

Neiman Marcus in Bankruptcy Proceedings

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.

The Neiman Marcus Group runs 43 Neiman’s stores and two Bergdorf Goodman stores, as well as an online business that includes  neimanmarcus.com,  bergdorfgoodman.com, and the Mytheresa luxury web site.

 

 

 

 

Sold! LVMH buys Tiffany & Co in $16.2 billion deal

The luxury French conglomerate and the American jeweller reach an agreement and it’s a big deal… In one of its biggest moves of the year – after Bvlgari, Chaumet, Fred, Hublot, and many others – LVMH (Louis Vuitton Moët Hennessy) acquired fabled American jeweller Tiffany & Co. for $16.2 billion, solidifying its place as the world’s biggest luxury group.

The deal, which saw LVMH initially bid $120 per share back in October before both parties settled on $135, will help re-energise the jewellery brand and its business which has seen a substantial drop in interest in America as well as abroad. The blockbuster move will strengthen LVMH’s position in jewellery, creating heady competition for Swiss conglomerate Richemont, which owns both the French Maison’s Cartier and Van Cleef & Arpels, and has dominated the hard luxury category in the past few years.

We are delighted to have the opportunity to welcome Tiffany & Co, a company with an unparalleled heritage and unique position in the global jewellery world, to the LVMH family. We have an immense respect and admiration for Tiffany and intend to develop this jewel with the same dedication and commitment that we have applied to each and every one of our Maisons. We will be proud to have Tiffany sit alongside our iconic brands and look forward to ensuring that Tiffany continues to thrive for centuries to come.

Bernard Arnaul, LVMH chairman and chief executive officer

With 75 distinguished Houses, Tiffany & Co now joins LVMH’s massive stable of luxury brands which include fashion houses Louis Vuitton, Christian Dior, and Celine, as well as beauty retail giant Sephora. “As part of the LVMH group, Tiffany will reach new heights, capitalising on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values”, Alessandro Bogliolo, chief executive officer of Tiffany.

Come into the beautiful world of Tiffany & Co.

 

 

 

 

Hublot New York’s Fifth Avenue

Luxury watch brand Hublot has opened a new store on New York’s Fifth Avenue. The 1,500 sq ft boutique is the second standalone for the brand in the city; it already has a smaller shop on Madison Avenue. The new branch was designed by the ubiquitous luxury architect Peter Marino and is aimed at the New York tourist market with brand education very much featuring as part of the brief.

The narrow store front is cast in black powder-coated aluminium panels inset with LED lights, and is said to be inspired by one of the brand’s watch bands. The dark palette continues into the store where lava stone walls are set against wood floors and leather furniture with glass display cases around the perimeter and in the mid-shop.

The new look store is a more premium concept for the business and is likely to be rolled out to its other new outlets and refurbishments. The recent ‘hard’ opening of the store was attended by sporting legends athlete Usain Bolt and Brazilian footballer Pele.

Hublot

743 5th Ave, New York, NY 10022, USA

More info at: Hublot

From Paris with Love, Cartier 154 Champs-Élysées

Since 1899, Cartier’s iconic address has been 13 Rue de la Paix, a few steps away from the world famous and prestigious Place Vendôme. This year however, reflecting its position as the world number 1 jeweller, the venerable Maison is starting a series of large-scale openings and reno­vations, starting with the re-opening of 154 Champs-Élysées, its other Paris regal address.

First opened 10 years ago, the renowned 154 Champs-Élysées address recently went through a major transformation by Parisian interior designer Bruno Moinard who revised it in its entirety during 8 months.

Bruno Moinard is the mastermind behind the ‘Moinard concept’, which has been applied to all the 340 Cartier boutiques in the world for about 20 years.

At 154 Champs-Élysées, a private townhouse built during the Second Empire, two floors, spanning 650 square meters, are divided into private lounges, a portrait gallery, and the­med spaces dedicated to diamonds, men, jewelry and accessories.

The subtle luxury of the chosen details, the measured extravagance, and the ultimate comfort  created by Bruno Moinard all reflect the high standards of refinement that a Cartier boutique obviously demands.

The remarkable and monumental entrance on the most beautiful avenue in the world, for instance: eight metres high, it is surrounded on either side by three curved balconies and windows over seven metres high, framing two impressive chandeliers which are almost five metros wide, made by French glasswork artist Régis Mathieu.

I also had a crush on the staircase, designed as a spiral, with a bronze bannister along walls shimmering with natural pigments, hand-coated by the workshop of French artisan Pierre Bonnefille.

Of course, Bruno Moinard made sure the entire space is treated with the same attention to details, literally from floor to ceiling: the floor alternates Versailles parquet and Istrian stone floo­ring set with tone on tone cabochons, surrounded by a golden border. The vast and regal space is modernised by smooth grey oak walls with bronze patina, and large panels of glass and golden threaded tulle. An amazing place to replace the strap on my Cartier Santos Dumont watch….

 

Shiseido signed for purchasing Serge Lutens trademark

Born in 1942 in Lille, France. In 1968, Serge Lutens was invited by Christian Dior to work as an art director for makeup product development, a position he then held for over 12 years. In 1980, he signed on with Shiseido for an image development project conducted in line with the Company’s full-scale launch of its European business and continued the collaboration over the next 20 years as Shiseido’s global image and visual identity.

Serge Lutens

Shiseido’s partnership with Mr. Serge Lutens, acknowledged by the high-fashion and cosmetics industry for his unique visual creations, started in 1980. It was largely thanks to this collaboration that the Company was able to successfully break into European markets and accelerated its globalization.
In 2000, confident of his own experience in perfumery and supported by the Shiseido group, Serge Lutens decided to create his own brand: Parfums Beauté Serge Lutens, later renamed as ‘Serge Lutens’.

Shiseido signed for purchasing the trademark of Serge Lutens, a name synonymous with luxury fragrances and cosmetics. This brand was created in collaboration with Mr. Serge Lutens and Shiseido has been in the process of negotiation since March 2015.

The purchase of the trademark rights will enable Shiseido to invest more in the brand such as opening up directly managed boutiques in major cities worldwide, and gradually increase points of contact while keeping its prestigious image. As of 2015, the brand has expanded to around 2000 outlets in 35 countries.

 

Mr. Lutens will keep directing the brand to transmit the spirit and the style.
In order to continue to promote the Serge Lutens brand in the future, Shiseido has concluded that it would be the best way to purchase the brand while maintaining its concept, ‘Rare and Lux’.

THE BURBERRY CAFE

Burberry has opened its first café at its London flagship store on Regent Street. It’s in good company with many luxury houses hosting in store cafes such as Armani, Ralph Lauren and Versus Versace

Burberry ‘Thomas’ Cafe, Regent Street 121, London

The all day café, ‘Thomas’, is named after the original founder of the fashion brand. It serves luxury fare from lobster to oysters, along with the quintessentially British afternoon tea. It’s housed in a new two storey ‘gifting area’ which sells home furnishings such as throws and cushions as well as games, stationery and travel accessories. The enticing products are stored in beautiful cabinets alongside the dining tables offering a new point of purchase.

Burberry ‘Thomas’ Cafe, Regent Street 121, London

The opening of the new café coincides with the brand’s expansion of its store in the luxury precinct at Westfield London adding another retail level. The interiors of the two stores follow the familiar Burberry pattern with slick black fixtures and high gloss monochrome tiling.

Burberry ‘Thomas’ Cafe, Regent Street 121, London

The Burberry café offers a menu of quintessentially British classics, from afternoon tea to lobster with chips, and is opened seven days a week. Of course, it won’t just serve any produce: Thomas’s will offer the finest seasonal ingredients from small farmers and artisan suppliers across the UK. The interior has an Art Deco appeal, with lantern chandeliers, large windows and black and white marble floors.

The area will also house a gifting space, where you buy a quick present for a lucky friend or family member after your meal. Among the gifts on offer, some of which can be personalised with a monogramming service, are home furnishing items, games, canvas tote bags with maps of London and stationery. Keeping with the personalised Burberry trend, there is an embroidery and embossing service. Presents can also be wrapped at the nearby gift-wrapping bar where customers can choose their own paper and ribbon.

These two new additions firmly place Burberry on the London tourist circuit which is readying itself for the summer inbound flux.

Burberry, Regent Street 121, London, UK

by Jean Amr