Retail

Neiman Marcus expects to emerge from bankruptcy by end of September

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Key Points
  • Neiman Marcus Group said on Friday it expected to emerge from Chapter 11 bankruptcy by the end of this month under a restructuring plan that is likely to eliminate more than $4 billion of its debt.
  • The high-end retailer said certain institutional investors will fund a $750 million exit financing package.
  • The Bankruptcy Court for the Southern District of Texas, Houston Division, approved Neiman Marcus' reorganization plan.
A delivery of boxes is wheeled as shoppers walk towards Neiman Marcus at the King of Prussia Mall in King of Prussia, Pennsylvania, November 22, 2019.
Mark Makela | Reuters

Neiman Marcus Group said on Friday it expected to emerge from Chapter 11 bankruptcy by the end of this month under a restructuring plan that is likely to eliminate more than $4 billion of its debt.

The luxury department store chain filed for bankruptcy protection in May, in one of the highest-profile retail collapses during the Covid-19 pandemic.

The 113-year old company said certain institutional investors will fund a $750 million exit financing package that would fully refinance its debtor-in-possession loan and provide additional liquidity for its business.

The Bankruptcy Court for the Southern District of Texas, Houston Division, approved Neiman Marcus' reorganization plan.

Clothing company J.Crew Group said last week it expects to emerge from bankruptcy in early September.