Luxury retailer Neiman Marcus files for bankruptcy protection

Luxury retailer Neiman Marcus files for bankruptcy protection

The luxury department store chain Neiman Marcus filed for bankruptcy protection Thursday, becoming the second major retailer after J.Crew to seek reorganization this week as the industry buckles under widespread store closures.

“Like most businesses today, we are facing unprecedented disruption caused by the COVID-19 pandemic, which has placed inexorable pressure on our business,” Geoffroy van Raemdonck, chairman and CEO of Neiman Marcus Group, said in a statement.

The Dallas-based chain filed for Chapter 11 reorganization in U.S. Bankruptcy Court in Houston. It has secured $675 million in financing to get it through its reorganization.

The luxury store chain, which operates 43 Neiman Marcus stores, 22 Last Call stores and two Bergdorf Goodman stores, has been burdened with nearly $5 billion in debt in part because of two leveraged buyouts in less than 10 years.

The company has clothed some of the world’s wealthiest people in runway brands from Alexander McQueen to Chanel. Founded in 1907 by Stanley Marcus, it aimed to bring Parisian fashion taste to America’s upper echelons. Its department stores were filled with shining $30,000 Rolex watches, $12,000 Tom Ford clutches and $90,000 fur coats. The retailer is known for its glossy Christmas catalog of excessive fantasy gifts and once featured a $7 million yacht.

Source: NBC News

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