Neiman Marcus Group, Inc., the American retailer, has finally got green signal from Texas-based bankruptcy court.
The court has clearly said that the retailer will initially get access to US $ 250 million and then another US $ 150 million by early September. The funds are expected to help the retailer with sufficient liquidity to continue their business as usual.
More on this, Geoffroy van Raemdonck, Chief Executive Officer, Neiman Marcus, said “The fund will help ensure business continuity as we reopen our stores, invest in fall inventory and also fund to increase our digital business.”
He also added that omnichannel has been instrumental in company’s strong performance over the last few weeks.
The retailer has been lately working hard to resolve all formal and informal objections that several of its stakeholders had in its financial plan.
The company also, reportedly, said that going forward it has signed an agreement with lenders to give them ownership stakes in the company and also provide an exit finance facility of US $ 750 million.
The agreement also says that the retailer should have a capital structure on exiting Chapter 11 that would slash US $ 4 billion in existing debt.
Though Neiman Marcus is on the verge of coming out of this crisis, it still has lot of challenges to face and overcome to reach the pre-pandemic state.
The American chain of luxury department stores today has 42 stores all across US and 2 Bergdorf stores in Manhattan, and it generates revenue of US $ 4.9 billion.
