Neiman Marcus Group has obtained U.S. court approval to get debtor-in-possession financing. The retailer said $250 million is available now and a further $150 million will be available as needed after Sept. 4, according to a statement.
The purpose of this court action is to provide financing so that Neiman Marcus can open its stores again after the temporary, pandemic-related closings. The financing covers such things as paying employees.
Neiman Marcus Group Chairman and Chief Executive Officer Geoffroy van Raemdonck said in the statement, “With the approval from the court to fully access the significant DIP (debtor in possession) financing we have secured from our creditors, we are well-positioned to continue to serve our customers and global luxury brand partners.”
The CEO continued, “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.”
He said the company is “on track” to emerge from the bankruptcy process in the fall.
And van Raemdonck also noted that 90 percent of its store footprint is open to some extent for complete shopping, personal appointment, curbside pickup or a “combination of those.” The company has Kirkland & Ellis LLP as its legal counsel, Berkeley Research Group as its financial adviser and Lazard Ltd. as its investment banker.
In early May, as announced in the past, the company came into a binding restructuring support agreement with holders representing more than two-thirds of its current debt. The company said its capital organization post-emergence is forecasted to take away roughly $4 billion in current debt, without any maturities in the short-term.
The news comes as Neiman Marcus may leave its trendy digs at the Shops at Hudson Yards in New York City, as reported by PYMNTS. The landlord is reportedly shopping it to possible occupants for office space. The developers of the high-end Manhattan mall, Oxford Properties and Related Companies, are reportedly marketing other retail space in the shopping center, too.