Things Aren't so Glamorous for Neiman Marcus
Things for high-end fashion brand Neiman Marcus aren't looking so pretty right now. Last Thursday, it was revealed that the company had filed for Chapter 11 bankruptcy, after previous reports were rumored in mid-April. Prior to this, the brand was already four million dollars in debt. CEO Geoffroy Van Raemdonck made a statement to CNBC saying, "Like most businesses today, we are facing unprecedented disruption caused by the COVID-19 pandemic, which has placed inexorable pressure on our business."
According to the Financial Post, the paperwork was filed in a Houston courthouse. Neiman Marcus and their creditors agreed to a $675 million dollar financial aid package to help the company restructure. In addition, they also agreed to a second package of $750 million dollars from creditors. This would not only help with their bankruptcy, but also supply extra liquidity for them, when they eventually recover from their struggles. Lastly, this deal completely puts the creditors in charge of the business, and will have them become the majority owners this fall, once the company is likely to recover.
Neiman Marcus is one of many major brands and companies struggling financially during 2020's COVID-19 pandemic. J-Crew also filed for Chapter 11 bankruptcy recently. However, Neiman Marcus was experiencing some struggles prior to the pandemic, which naturally increased once the pandemic hit. As per Bloomberg, Neiman Marcus had started closing outlet stores in March, and 500 jobs were cut within the operation.
Report: Corine Gauthier
At the rise of Covid-19 many of us first questioned the timeline of fashion week and would we see the regular calendar continue - the question weighed over many of us for months! It was refreshing to see design houses and designers across the globe take advantage of the uncertainty and plow into production mode - thus my interest in Jerri Reid New York - The Black Designer based in Brooklyn New York wow’d instagram with his latest collection paying homage to the Black Is King film which debuted earlier this year in July. I was taken aback at quick of a turn round the young designer produced and released his well crafted designs reflecting some of the films most memorable moments.