Luxury store Neiman Marcus documents for bankruptcy
Luxury store Neiman Marcus documents for bankruptcy
“Like most businesses today, we're facing extraordinary disruption as a result of the COVID-19 pandemic, which has located inexorable pressure on our enterprise,” the CEO of Neiman Marcus stated
The luxury branch keeps chain Neiman Marcus filed for financial ruin on Thursday, the second main retailer after J.Group to seek reorganization this week as the enterprise buckles below considerable store closures
“Like most agencies these days, we are going through unheard of disruption due to the COVID-19 pandemic, which has positioned inexorable stress on our enterprise,” said Geoffroy van Raemdonck, chairman and CEO of Neiman Marcus Group, in a statement
The Dallas-based total chain filed for bankruptcy 11 reorganization inside the U.S. Bankruptcy Court docket for the Southern District of Texas, Houston division. It has secured $675 million in financing to get it through its reorganization
The luxurious shop chain, which operates 43 Neiman Marcus shops, 22 last call shops, and two Bergdorf Goodman stores, has been confused with almost $5 billion in debt in part because of leveraged buyouts in much less than 10 years
The agency has clothed a number of the sector's wealthiest people in runway brands from Alexander McQueen to Chanel. Based in 1907 by way of Stanley Marcus, it aimed to carry Parisian fashion taste to us’s top echelons. Its department shops had been full of shining $30,000 Rolex watches, $12,000 Tom Ford clutches, and $90,000 fur coats. The store is understood for its smooth Christmas catalog of immoderate fantasy presents, and once featured a $7 million yacht
But customer behaviors have modified with the arrival of online buying and price buying. Leading up to the pandemic, the organization noticed sales and revenue tumble as competition multiplied for its luxurious purchaser base. Neiman Marcus suggested a loss of $31.2 million in July, as compared with a net lack of $19.9 million the previous yr
Marketplace conditions were brutal for the retail enterprise over the past several weeks. Like different shops, Neiman Marcus stores have been closed considering that mid-March as nation governors issued live-at-home orders to stem infections. The employer furloughed nearly all of its 14,000 personnel on March 30. Shops will be quickly closed through can also 31, the organization stated
The enterprise expects to emerge from a financial disaster in early Fall 2020
“we can emerge a much stronger business enterprise,” said van Raemdonck. “In a global that is changing, we're uniquely placed to give our emblem companions get entry to our loyal luxurious customers like no other corporation
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