Neiman Marcus Group has emerged from bankruptcy protection, with new owners and a lot less debt.
The luxury department store retailer’s restructuring plan includes the elimination of more than $4 billion of its roughly $5.5 billion existing debt and more than $200 million of cash interest expense annually. Neiman Marcus said that it emerges from Chapter 11 with the full support of its creditors and new equity shareholders, and is now operating a strengthened capital structure, with no near-term maturities.
Neiman Marcus filed for bankruptcy in May, and announced approval of its Chapter 11 reorganization plan by U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, on Sept. 8. The company is reportedly reducing its headcount, with some selling and non-selling employees across its stores being let go.Chain Storeage