The Bankruptcy Court of Texas has finally approved Neiman Marcus’ restructuring plan!
The US-based fashion label said on Friday (4 September) that it hopes to exit Chapter 11 by the end of this month under a restructuring plan.
The restructuring plan is likely to end the retailer’s debt of over US $ 4 million out of US $ 5.5 billion in borrowings.
Neiman Marcus also added that some institutional investors will be funding an exit financing package of US $ 750 million. The exit financing package will help refinance retailer’s debtor-in-possession (DIP) loan and provide more liquidity to run its business.
The coming weeks may, thus, see the retailer still doing business, but hopefully in a better financial condition.
Further substantiating, Geoffroy van Raemdonck, CEO, Neiman Marcus, said that while many companies have been taking debts during the pandemic, Neiman has successfully shaved debt and increased cash liquidity. That gives Neiman the much needed competitive advantage.
Early last week, the retailer had announced the permanent closure of 3 more stores in the US and expressed its intent to focus more on its digital business. The American retailer is known majorly for its apparels, lingerie and accessories.
Also Read: Neiman Marcus’ new additions to its list of stores to be shut permanently
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