The owner of luxury department store chains Neiman Marcus and Bergdorf Goodman has filed for voluntary bankruptcy due to ‘inexorable pressure’ brought on by the coronavirus pandemic.
According to a statement, the Neiman Marcus Group’s retailers have faced unprecedented disruption since the outbreak forced non-essential stores to close.
In response, Neiman Marcus is preparing to implement a Restructuring Support Agreement (RSA) with a number of its creditors to reduce debt, interest payments and financial restructuring.
This includes a US$750m bailout package that it hopes will pay off its debtor-in-possession and offer additional liquidity for the business.
“Prior to Covid-19, Neiman Marcus Group was making solid progress on our journey to long-term profitable and sustainable growth,” said the company’s Chairman and CEO Geoffroy van Raemdonck.
“However, like most businesses today, we are facing unprecedented disruption caused by the Covid-19 pandemic, which has placed inexorable pressure on our business.
“My team and I appreciate the partnership and the steadfast support of all our stakeholders and Board of Directors through this process.”
In the US, ten Neiman Marcus stores are open for collection orders, while all other Neiman Marcus and Bergdorf Goodman shops remain closed along with its footwear retailer Last Call.
The company expects to come out of the process by autumn.
Van Raemdonck added: “We will emerge a far stronger company. In a world that is changing, we are uniquely positioned to give our brand partners access to our loyal luxury customers like no other company.
“We will deliver that through the strength of our associate relationships and digital solutions.”
Today, the US has confirmed more than 1.3 million cases of coronavirus, and more than 79,000 deaths, according to Johns Hopkins’ resource centre.