Neiman Marcus emerged from voluntary Chapter 11 protection, completing its restructuring process and implementing its plan of reorganization, which was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division on Sept. 4. Neiman Marcus emerged with the full support of its creditors and new equity shareholders and now will operate with a capital structure that eliminates more than $4 billion of existing debt and more than $200 million of cash interest expense annually with no near-term maturities.
“With the successful implementation of our restructuring, Neiman Marcus and Bergdorf Goodman will continue to be the preeminent luxury shopping destinations for years to come. 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,” Geoffroy van Raemdonck, CEO of Neiman Marcus, said. “Our new owners, which include PIMCO, Davidson Kempner Capital Management and Sixth Street, understand the value of our brands and the opportunity for growth. They are also strongly committed to supporting our company on sustainability issues, where we intend to be a leader within the industry. 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.”
Neiman Marcus’ new owners, including PIMCO, Davidson Kempner Capital Management and Sixth Street, are funding a $750 million exit financing package that fully refinances the debtor-in-possession loan and provides additional liquidity for the business. Neiman Marcus also secured a $125 million FILO facility led by Pathlight, the proceeds of which refinance existing debt and will provide liquidity to support the company’s ongoing operations and strategic initiatives. The exit term loan financing and FILO facility are in addition to the liquidity provided by the $900 million ABL led by Bank of America and a consortium of commercial banks. With the support of its new shareholders and funds available from the exit financing, FILO facility and ABL facility, Neiman Marcus expects to be able to execute on its strategic initiatives.
Neiman Marcus Group also emerged with a newly constituted board of directors, including:
- van Raemdonck
- Meka Millstone-Shroff, who serves as a strategic operating advisor and board member to a variety of companies, including serving as an independent director on the boards of Party City and Nanit
- Pauline Brown, who most recently served as the chairman of North America for LVMH Moët Hennessy Louis Vuitton and served on the boards of L Capital and several LVMH subsidiaries, including Donna Karan, Marc Jacobs and Fresh Cosmetics
- Pamela Edwards, who most recently served as CFO of the Mast Global and Victoria’s Secret divisions of L Brands
- Kris Miller, who most recently served as the chief strategy officer for eBay from 2014 to 2020
- Scott D. Vogel, who is the managing member at Vogel Partners
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Kirkland & Ellis is serving as legal counsel, Lazard is serving as investment banker and Berkeley Research Group is serving as financial advisor to Neiman Marcus.
Wachtell, Lipton, Rosen & Katz is serving as legal counsel and Ducera Partners is serving as investment banker for the extended term loan lenders.
Paul, Weiss, Rifkind, Wharton & Garrison is serving as legal counsel and Houlihan Lokey is serving as investment banker to the note holders.
