Report: Neiman Marcus may exit bankruptcy by year’s end
Neiman Marcus Group has received conditional approval for a reorganization plan that could have it leave Chapter 11 bankruptcy in early December.
According to the Dallas Morning News, a U.S. Bankruptcy Court judge is expected to approve a business plan and a settlement with unsecured creditors of Neiman Marcus’ European Mytheresa luxury fashion website. Neiman Marcus initially filed for Chapter 11 bankruptcy in May 2020.
The court also approved large pay raises for Neiman Marcus CEO Geoffroy van Raemdonck and seven other high-ranking executives. In addition, $8.7 million was approved to provide raises to 239 other employees, including VPs. Compensation increases were approved over the objections of the bankruptcy court’s trustee. Creditors and lenders did not oppose the raises on the grounds they are necessary to retain valuable staff.