Neiman Marcus Files for Chapter 11 Bankruptcy, to Shed $4 Billion in Debt

Dallas — Neiman Marcus Group has filed for Chapter 11 bankruptcy protection as the Dallas-based luxury retailer enters into negotiations with creditors to restructure its debt. Upon emergence, the company anticipates it will eliminate approximately $4 billion of its existing debt. Neiman Marcus has secured $675 million in debtor-in-possession financing from creditors to enable business continuity during the bankruptcy proceedings. These creditors have also committed to a $750 million exit-financing package that would provide additional liquidity for the business. Neiman Marcus Group, which also owns Bergdorf Goodman and Last Call, recently extended temporary closures of all its stores through May 31, although a total of 10 Neiman Marcus stores in Texas; Tampa, Florida; Las Vegas; and Tysons Corner, Virginia, are offering curbside pickup. About a month ago, several news outlets including Reuters, Bloomberg and The Dallas Morning News reported that the company would be furloughing the majority of its 14,000 store employees. Neiman Marcus, which operates 43 Neiman Marcus stores, two Bergdorf Goodman locations and 22 Last Call outlets, expects to complete the proceedings by this fall.