Neiman Marcus Group LTD LLC announced that it has received approval from the U.S. Bankruptcy Court for the Southern District of Texas Division to access debtor-in-possession (“DIP”) financing and is on track to exit bankruptcy proceedings by the fall.
The financing includes the immediate availability of $250 million and an additional $150 million as needed after September 4, 2020. The company had previously received interim approval for $275 million as part of the first day motions related to voluntary Chapter 11 proceedings commencing on May 7, 2020.
“With the approval from the Court to fully access the significant DIP financing we have secured from our creditors, we are well-positioned to continue to serve our customers and global luxury brand partners,” said Geoffroy van Raemdonck, chairman and chief executive officer of Neiman Marcus Group. “This financing provides us with ample liquidity to ensure business continuity as we gradually reopen our stores, invest in Fall inventory, and fund the expansion of our digital offerings as we continue our journey to become the preeminent luxury customer platform. Importantly, we remain on track to emerge from this process in Fall 2020.”
Van Raemdonck continued, “I have been inspired by the love, commitment, and deep relationships our associates have with our customers as we continue to delight them with the services that Neiman Marcus Group shoppers have come to expect while ensuring the health and wellbeing of our employees and customers alike. Our business performance in recent weeks has been strong thanks to the success of our omnichannel experience. With our digital stylists and remote selling capabilities, our associates have continued to engage with and support customers anytime, anywhere, driving significant sales even while remote. Ninety percent of the store fleet is open to some degree – either for curbside pickup, private appointment, full shopping, or some combination of those. This would not be possible without the support of our lenders, brand partners, and our dedicated associates.”
Photo courtesy Neiman Marcus
