With access to finance, Neiman Marcus could soon reopen stores

Bankrupt retailer Neiman Marcus secured a court approval for debtor financing, giving the struggling department store access to 250 million dollars with a further 150 million dollars available after 4 September.

The funding would allow the group to reopen its stores after the Covid-19 closures, pay employees and restructure its debts.

Neiman Marcus Group Chairman and Chief Executive Officer Geoffroy van Raemdonck said in a statement, “With the approval from the court to fully access the significant DIP (debtor in possession) financing we have secured from our creditors, we are well-positioned to continue to serve our customers and global luxury brand partners.”

“This financing provides us with ample liquidity to ensure business continuity as we gradually reopen our stores, invest in fall inventory, and fund the expansion of our digital offerings.”

Back in May the Neimans Marcus Group said it had approximately 4 billion dollars of debt without any maturities in the short-term. It entered into a binding Restructuring Support Agreement (“RSA”) with holders representing over two-thirds of the Company’s outstanding debt.

Kirkland & Ellis LLP is serving as legal counsel to the company, Lazard Ltd as the Company’s investment banker, and Berkeley Research Group is serving as the Company’s financial advisor.

Image via Neiman Marcus