Neiman Marcus gets OK for DIP financing
Neiman Marcus Group’s bankruptcy process is moving along.
The luxury retailer, which filed for bankruptcy in early May, has received approval from the bankruptcy court to access debtor-in-possession (DIP) financing, including the immediate availability of $250 million and an additional $150 million as needed after September 4. Neiman’s had previously received interim approval for $275 million as part of the first day motions related its Chapter 11 proceedings.
"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 as we continue our journey to become the preeminent luxury customer platform, said Geoffroy van Raemdonck, chairman and CEO, Neiman Marcus Group. “Importantly, we remain on track to emerge from this process in fall 2020."
The CEO added that the company’s business performance in recent weeks has been strong due to the success of its omnichannel experience. Ninety percent of Neiman’s store fleet has reopened to some degree – either for curbside pickup, private appointment, full shopping, or some combination of those.
“With our digital stylists and remote selling capabilities, our associates have continued to engage with and support customers anytime, anywhere, driving significant sales even while remote,” stated von Raemdonck.