Business InsiderTop News

Bankruptcy court approves Neiman Marcus’ plea to access financing

imageStock Markets8 hours ago (May 09, 2020 01:45AM ET)

(C) Reuters. FILE PHOTO: The Neiman Marcus store is seen in New York

(Reuters) – U.S. luxury department store chain Neiman Marcus Group said on Friday it received court approval to access $675 million of its debtor-in-possession financing, which will allow continuity of the company’s business during Chapter 11 bankruptcy proceedings and enable it to pay employees and vendors.

The interim approval of its ‘first day motions’ from the Bankruptcy Court for the Southern District of Texas, Houston Division, came a day after the company filed for bankruptcy protection, marking one of the highest-profile collapses yet among retailers forced to temporarily close stores in response to the COVID-19 pandemic.

Neiman Marcus filed for bankruptcy in a federal court in Houston, and said on Thursday it had reached agreement with creditors for $675 million of debtor-in-possession financing to aid operations while it attempts to reorganize.

The Dallas-based retailer plans to cede control to creditors in exchange for eliminating $4 billion of debt. Its debt currently totals about $5 billion.

The company has said it expects to emerge from Chapter 11 proceedings in early fall with a $750 million package from creditors that provided its initial bankruptcy loan.

Founded in 1907 when the Marcus and Neiman families opened their first store in Dallas, the retailer expanded across the United States to become a fashion mainstay for celebrities and other wealthy customers seeking expensive handbags, clothing and the like.

Neiman Marcus changed hands among private equity firms over the past 15 years, eventually being sold in 2013 to Ares Management Corp (N:ARES) and the Canada Pension Plan Investment Board in a $6 billion debt-fueled buyout.

Bankruptcy court approves Neiman Marcus’ plea to access financing

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button
Close
Close

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!