Celebrating Pride & Leading with Love for All

Pride Month is a moment when we, those who identify as LGBTQ, stand proudly and celebrate the journey, the struggles, and the progress we’ve made as a community. I am proud to lead an organization that cares to make a difference by leading with love. I invite you to take a few moments and allow me to share a few thoughts about why it is Neiman Marcus Group’s duty to advocate for LGBTQ rights, both in and outside of the workplace, during and outside of Pride month.

Geoffroy van Raemdonck, Chief Executive Officer at Neiman Marcus Group

LOVE will always lead the way! This is why we love Neiman Marcus soo much! Come into the beautiful world of Neiman Marcus.

Neiman Marcus Exits Bankruptcy, Looks to Reimagine Business

Serving as an unexpected light in the retail crisis brought on by the Covid-19 virus pandemic, Neiman Marcus has officially come out of Chapter 11 bankruptcy. According to reports, the luxury department store has cleared a sizeable amount of debts and has brought on new owners to reimagine its business.

Neiman Marcus has officially come out of bankruptcy, a process that left the upscale department store with a lighter debt load and new owners to confront the same industry trends that led to its financial woes.

The Ares Management Corp. and Canadian Pension Plan Investment Board have now sold their stakes in Neiman Marcus Holding Company Inc. to Pacific Investment Management Co., Davidson Kempner Capital Management and Sixth Street Partners. Accompanying the change of owners is new board comprised of six members including, Pauline Brown, the former chairman of North America for LVMH Moët Hennessy Louis Vuitton SE, and Kris Miller, the former chief strategy officer at eBay.

Under new management and board, the retailer eliminated more than $4 billion USD of existing debt and now looks to combat the continuing challenges that put it into bankruptcy. The new owners have also prepared a $750 million USD exit package that will go towards refinancing a loan and bring much needed liquidity to the business.

With the financial cleanup completed, Neiman Marcus and its Bergdorf Goodman store still must deal with the pandemic’s fallout, shopper defections to online merchants and a preference among younger customers for experiences instead of objects.

The current environment for a fashion luxury retailer isn’t ideal. The company was hit particularly hard by the pandemic. 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, although 31 locations have gradually started to reopen. The company filed for court protection in May.

The new owners “understand the value of our brands and the opportunity for growth”, said a Geoffroy van Raemdonck, the chief executive officer who kept his position during the bankruptcy process and will now lead the turnaround effort.

Some of Neiman’s creditors and retail peers couldn’t say the same. Lord & Taylor has been running going-out-of-business sales, and Stein Mart Inc. is being dismantled. Marble Ridge Capital, a creditor that peppered Neiman Marcus with objections to its debt maneuvers before and after the bankruptcy filing, is being wound down after co-founder Dan Kamensky’s tactics drew criminal charges.

“While the unprecedented business disruption caused by Covid-19 has presented many challenges, it has also given us the opportunity to reimagine our platform and improve our business”, said van Raemdonck. “We emerge from Chapter 11 as a stronger, more innovative retailer, brand partner, and employer”.

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.

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.