The loans will go mostly to the import of machinery rather than working capital, according to a recent article from The Economic Times.
Neiman Marcus Exits Bankruptcy Under New Owners
Geoffroy van Raemdonck will remain CEO of the retailer.
Dallas—Neiman Marcus has emerged from Chapter 11 bankruptcy after completing its restructuring process and reducing its debt.
The retailer has new owners, including investment firms PIMCO, Davidson Kempner Capital Management, and Sixth Street.
The new owners will finance a $750 million exit financing package, which will give the retailer additional liquidity and allow it to refinance its debtor-in-possession financing.
Neiman Marcus also received a $900 million asset-based loan from Bank of America and other commercial banks.
On top of these, it will get a $125 million FILO facility, a type of asset-based revolving credit facility, from private credit investment manager Pathlight.
The funds will be used to support ongoing operations.
The department store chain filed for Chapter 11 bankruptcy protection in May with plans to reorganize and emerge by the fall.
It had been struggling under a mountain of debt followed by disruptions related to the coronavirus pandemic, including temporary store closures and the furloughing of 14,000 employees.
The retailer has closed seven of its 43 Neiman Marcus locations and 17 of its 22 Last Call discount stores.
The most notable closure was its Hudson Yards location, a 188,000-square-foot store in the new and upscale New York City shopping center.
As per its restructuring plan, the company eliminated more than $4 billion of existing debt and more than $200 million of interest expense, with no near-term maturities.
Geoffroy van Raemdonck will remain CEO of the company and has a seat on its new board of directors.
The board also includes Meka Millstone-Shroff, a strategic operating officer at several companies; Pauline Brown, former chairman of North America for LVMH; Pamela Edwards, former chief financial officer of the Victoria’s Secret divisions of L Brands; Kris Miller, former chief strategy officer for eBay; and Scott Vogel, the managing member at investment firm Vogel Partners LLC.
“At the conclusion of this process, I remain profoundly impressed by the strength of Neiman Marcus and Bergdorf Goodman, the commitment of our associates, the unwavering support of our brand partners, and the loyalty of our customers,” said van Raemdonck in a press release.
“While the unprecedented business disruption caused by COVID-19 has presented many challenges, it has also given us the opportunity to reimagine our platform and improve our business. We emerge from Chapter 11 as a stronger, more innovative retailer, brand partner and employer."
The sale also will include a third Rolex, with all three watches tied to Barrett’s 1979 attempt to break the world record for land speed.
Rio Grande provides a pathway to responsibly sourced gemstones.
Sponsored by AGTA
“Art as Jewelry as Art” features works from artists like Salvador Dalí, Alexander Calder, and Max Ernst.
From laboratory-grown diamonds to design to country-of-origin, GIA's Alumni Collective™ has a seminar to suite your needs.
The Belgian organization is calling for entries from all over the world, with an eye on attracting emerging talent.
Sherry Smith digs into year-to-date data on lab-grown vs. natural diamonds, the performance of colored gemstone jewelry, and more.
Associate Editor Lenore Fedow leads readers through the Italian jeweler’s works from the 1940s to the 2000s.
There were only 250 made available, selling for more than $50,000.
The British-based Swiss designer’s “Pottering Around” collection is for sale at Sotheby’s East Hampton starting this week.
The diamond firm will give the donation at a ceremony in Namibia this month during a trip for select retail jeweler partners.
He was convicted last month after falsely claiming he had a deal with Costco in order to obtain millions in diamonds from LLD Diamonds USA.
Dorian Webb, one of the designers in the Emerging Designers Diamond Initiative, will be the first to work with Gemist.
The charity will hold its fifth annual fundraising day on Sept. 24.
The brand has attracted attention for its colorful, vintage-inspired pieces.