Pure Beauty

Out of bankruptcy but not out of the woods: Neiman Marcus reduces staff headcount

By Becky Bargh | Published: 25-Sep-2020

The department store chain is expected to lay off staff across Neiman Marcus and Bergdorf Goodman locations

Following its re-emergence from bankruptcy, luxury department store chain Neiman Marcus has said it will reduce its staff numbers as it begins a reassessment of its business.

The world-renowned retailer said it began laying off staff at Neiman Marcus and Bergdorf Goodman locations earlier this week.

A spokesperson for the company told Cosmetics Business that the group "is now in a much stronger financial position than we were prior to our Chapter 11 restructuring" and that "Neiman Marcus will emerge with substantially reduced debt, one of the best capital structures among multi-retailers, and enhanced financial flexibility."

They added: "We are evaluating every part of our business to ensure that the company is positioned for long-term success.

"On 23 September we began a reorganisation of our Neiman Marcus and Bergdorf Goodman store associate structure. We plan to separate from selling and non-selling associates.

"These are difficult decisions we must make at this time and we are so grateful for our dedicated store associates.”

“We plan to separate from selling and non-selling associates.”

Meanwhile, the company intends to roll out new positions on the shop floor.

Earlier this month, the Texas-based group announced plans to reenter the market after filing for Chapter 11 bankruptcy in May.

In the announcement, the retailer said it has cleared more than US$4bn of its debts thanks to fresh financial backing.

Investors are also expected to fund a $750m exit financing package to refinance the debtor-in-possession.

The group’s fling was just one example of many retailers that struggled to keep afloat during the Covid-19 lockdown.

Debenhams and J.C. Penney also fell into administration earlier this year due to the enforced shut down.

Cosmetics Business has reached out to Neiman Marcus for comment.

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