Neiman Marcus Files for Bankruptcy Protection

The luxury retailer is the second significant holder of institutional debt to do so

Luxury retailer Neiman Marcus Group filed for Chapter 11 bankruptcy this morning in Texas as part of a restructuring agreement with its creditors to remove some $4 billion in debt from its balance sheet, the company announced.

The department store chain said it plans to emerge from bankruptcy protection in the fall.

The company said it secured $675 million in debtor-in-possession (DIP) financing from its largest creditors, who in turn will become majority shareholders. That group of creditors includes Pacific Investment Management Co.

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