Neiman Marcus reaches an agreement with creditors to alleviate 4.6 billion dollars debt

New York - US-based luxury department store operator Neiman Marcus Group has announced it has reached an agreement with its creditors and gained more time to pay off its 4.6 billion dollars debt.

After reporting decreasing figures for the quarter, Neiman Marcus announced it has reached a final settlement with creditors on its previously announced exchange offers. The deal gives the retailer some time to pay down its 4.6 billion dollars debt pile and improve its business thanks to extended loan maturities (from 2020 to 2023 and from 2021 to 2024).

Neiman Marcus posted Tuesday a net loss of 31.2 million dollars for the quarter ended on April, 27. That’s about 40% higher than last year comparable period’s 19.9 million dollars. Adjusted earnings before interest, taxes, depreciation, and amortization were 126.5 million dollars, falling short from the 143.8 million dollars recorded a year ago.

Excluding MyTheresa, U.S. adjusted EBITDA for the third quarter was 126.5 million dollars, also down from last year. Is worth recalling that news broke earlier this year about Neiman Marcus, which acquired MyTheresa in 2014, reportedly exploring strategic alternatives for the Germany-based luxury fashion online retailer.

Revenue fell to 1.05 billion dollars from 1.55 billion dollars last year. Same-store sales fell 1.5 percent, the first decrease after six consecutive quarters of gains, highlighted the ‘Wall Street Journal’.

Despite the disappointing results, CEO Geoffroy van Raemdonck was optimistic about the company’s recent efforts, which include taking a minority stake in online resell retailer Fashionphile. “We continue to drive innovation and are making long-term investments in technology and customer-centric capabilities that will both enrich the shopping experience and position the company for long-term growth,” said van Raemdonck.