In a move that reportedly allows for business continuity, Neiman Marcus Group said in a statement that it has received interim court approval for all of its first-day motions regarding its voluntary Chapter 11 proceedings filed on May 7.
Neiman Marcus Group Chairman and CEO Geoffroy van Raemdonck said in the statement, "We are pleased to receive court approvals of our first-day motions, which provide us with ample liquidity to operate the business and allow our dedicated associates, together with our brand partners, to continue providing magical experiences to our loyal luxury customers. This will ensure both our short-term and long-term success as a relationship and digital leader in luxury retail.”
The court allowed for the retailer’s access to $675 million in debtor-in-possession financing from creditors that would “enable business continuity during proceedings,” per the statement. It also authorized motions that bolster continued operations, including the authorization to keep paying staff members' wages and benefits. The motions will also enable the retailer to maintain customer-related initiatives including loyalty programs, return policies, credit cards and gift cards.
The retailer announced on May 7 that it had become a part of a binding restructuring support agreement, with holders representing more than two-thirds of the firm's outstanding debt. The agreement includes commitments from holders of more than 69 percent of debtors’ third lien notes, more than 77 percent of debtors’ extended-term loans and more than 99 percent of debtors’ second lien notes.
The statement comes as news surfaced that Neiman Marcus had filed for bankruptcy. At the time, van Raemdonck said in a statement, “This is simply a process that allows our company to alleviate debt, access additional capital to run the business during these challenging times, and emerge a stronger company with the ability to better serve you and continue our transformation over the long term.”