Neiman Marcus emerged from voluntary Chapter 11 protection. The company’s new owners, including PIMCO, Davidson Kempner Capital Management and Sixth Street, are funding a $750 million exit financing package.
Debt investment firm Marble Ridge Capital sent a letter to the Neiman Marcus board of directors in light of the credit default swap market indicating a greater than 80% probability of default.
Marble Ridge Capital brought suit against Neiman Marcus Group, alleging the company had fraudulently transferred $1 billion in assets for no consideration in order to benefit Ares Management and the Canada Pension Plan Investment Board, the beneficial owners of the Group.
Somewhat encouraging numbers from this past holiday shopping season are lending good news to the overall economy, as consumer confidence strengthens and retail stocks tick upward. But the modest gains shouldn’t be interpreted as a rebound for the fractured retail industry, which will continue to face losses and a substantial transformation as it sweeps up the mess.