After four months of court negotiations, the luxury beauty and fashion retailer has been able to eliminate more than $4bn of debt
Luxury US retail chain Neiman Marcus is preparing to re-emerge from Chapter 11 bankruptcy with a ‘substantially’ reduced debt load.
Armed with new backing, the Dallas-based retailer will operate with a strengthened capital structure that will eliminate more than US$4bn of its debt.
Investors will also fund a $750m exit financing package to refinance the debtor-in-possession and provide liquidity for the business.
Neiman Marcus’ Chairman and CEO Geoffrey van Raemdonck said the announcement was an exciting day for the company.
“Throughout this process, I’ve been so impressed by the commitment of our associates, who continue to extend passion and love for our customers,” he noted.
“I’m also grateful to our brand partners for standing with us and believing in our business.
“I remain inspired by the opportunity to continue to surprise and delight our customers online, in-store and at home as we continue on our journey to become the preeminent luxury platform.”
If all conditions are finalised, Neiman Marcus will make its comeback to the market on 30 September.
The beauty and fashion retailer announced its descent into bankruptcy in May this year due to ‘inexorable pressure’ of the Covid-19 pandemic.
According to Vogue Business, the retailer’s new owners include Davidson Kempner Capital Management, Sixth Street Partners and Pacific Investment Management.