Neiman Marcus files for bankruptcy protection
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- Опубликовано: 6 май 2020
- CNBC's Courtney Reagan reports on retailer Neiman Marcus' decision to file for Chapter 11 bankruptcy amid the coronavirus pandemic.
Neiman Marcus, saddled with debt and hit by the coronavirus pandemic, filed for bankruptcy on Thursday with a deal to hand its business over to its creditors.
The luxury department store chain had been struggling with competition from online rivals and dwindling cash before the outbreak. The health crisis exacerbated its problems, forcing it to furlough most of its 14,000 workers and close its 43 Neiman Marcus stores.
It is now the second major retailer to declare bankruptcy during the pandemic, following J. Crew’s filing earlier this week. It is likely not the last. J.C. Penney has also been exploring filing for bankruptcy. Many others are likewise forced to cope with sales that have been cut off and uncertainty over how people will shop in the future.
“Like most businesses today, we are facing unprecedented disruption caused by the COVID-19 pandemic, which has placed inexorable pressure on our business,” CEO Geoffroy van Raemdonck said in a statement.
“The binding agreement from our creditors gives us additional liquidity to operate the business during the pandemic and the financial flexibility to accelerate our transformation. We will emerge a far stronger company.”
Neiman Marcus said it has secured $675 million in financing from its creditors to fund operations through bankruptcy. Those creditors have also committed to a $750 million financing package that would fully refinance that financing and provide additional liquidity for the business once it exits bankruptcy.
It expects to emerge from bankruptcy this fall, at which point its creditors will become majority owners of the business.
The bankruptcy filing will help it eliminate roughly $4 billion in debt that remains as a memento from its sale to private equity firms Ares Management and the Canada Pension Plan Investment Board in 2013.
The retailer said Thursday that it has extended temporary closures of some Neiman Marcus, Bergdorf Goodman and Last Call stores through May 31. Starting this week its stores in Atlanta and the NorthPark mall in Dallas are available to customers by private appointment.
Neiman Marcus has long been known for its upscale brand and strong customer service. Its holiday catalog, known as The Christmas Book, first hit mailboxes and doorsteps in 1939, cementing the retailer’s place in many wealthy Americans’ homes.
Like a number of retailers in the 2000s, it caught the eye of private equity firms eager to take advantage of what was once seen as steady retail cash flow. It sold to private equity firms TPG Capital and Warburg Pincus for $5.1 billion in 2005, before its current owners bought it eight years later.
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Neiman Marcus does not need to exist where they fall, thousands of small businesses will pick of the slack putting money into the pockets of the people. Lets these companies fail.
How??? They sell 1000 dollar T shirts smh ....And get this lady a sandwich, Jesus.
It's all about the name that tee shirts they charge u 1000 for is bought by us buyers for 1.00 each sime we paid LA Apparel for 3.24 each if uvwant a n ac me like Gucci that will cost u 1000.00.its the name .
instead of cutting their prices and becoming more affordable they would rather file for bankruptcy smh
Neiman Marcus, more like needless markup!
Facts...this lady needs some FOOD STATTT. JESUS she will blow away in a strong wind
let the bodies hit the floor
Austin Zappas Hahahahaha. 😂 That’s a good one. 👍🏽
Austin Zappas American soldiers play that song when they murder people in cities from helicopter rockets
@@twilightgardenspresentatio6384 damn
😭😭😭😭😭
Just ask how much Neiman Markus CEO is making even though they are filing for bankruptcy.
Geoffroy van Raemdonck made $11,106,694 in total compensation.
Good one 🤦🏻♀️
She makes close to 4 million a yr.
how can any buissness be alowed to run up such massive borrowings when half the world dont even have food and clean water what a world we live In
Paul garside
Corporate debt, especially what are called “covenant-lite” loans are at or near record levels. The covenant-lite loans are like sub-prime mortgages from the 2000s.
As the failures cascade, expect another taxpayer bailout. It’s what capitalists do. Cry socialism until they need to grab money from the public.
Course they can they're a very wealthy company and when the wealth sells to wealthy people and when you're poor you go to Walmart the average person is a person that makes seventy-five thousand and under that's an average person second average person is 75 to 500,000 is the second class of people then you have the $500,000 and up to three million dollars is the Upper Crust E-class we are Neiman Marcus guess all their clients from they are not a company that wants to listen to cry babies they want people to spend money there they have products their Deco is cheap as $6 the highest amount of product in that's in any of their stores is 3 million dollars and it's a diamond necklace bracelet and earring set that's what they have. Then they have the next group of people that want just an in-between gift for a teacher of good friends espouse or something that they could impress remember the word empress you don't have to impress anybody with the name Neiman Marcus you can impress me with anything you buy as long as it's a gift and it came from your heart what you say people want the very best and they want you to pay for it. So when they decide to go out of business and try to blame it on the little guy who's making under $100,000 a year they are trying to force these people to work like dogs for them we are the buyers yes I made some money when I work there and it was over the hundred-thousand-dollar bracket but I see a lot of people starving and watching food and Neiman Marcus couldn't give a rat's ass about anybody hungry or starving or homeless they are only after the almighty dollar and don't give a crap about you or me that is why I decided to leave way before they were planning to go bankrupt we heard about this bankrupt thing from them 10 years ago they complained about everybody's not doing their part Bloomingdale's the same thing nobody's buying from Bloomingdales either there's another company Nordstrom's Nordstrom's is nobody's buying from Nordstrom's but Nordstrom's company is not as expensive as Neiman Marcus Neiman Marcus is a corporation built on Prop processes where people make a lot of money and I don't care if you're dying in the street they want their money and they want it now whereas North Nordstrom's is a family-run company I Nordstrom's does care about the environment they do care about their people and they do care about their cells a Nordstrom's cheapest item in Nordstrom's is 99 Cents highest value of something in Nordstrom's is 500,000 they are not here to screw you over like Neiman Marcus is. My opinion only and that's about it they are looking to make money show is the 3/4 of the world is trying to make money but when you lose you don't give anyone any money from your company because you see your employee who's been working there for 35-40 years with the company then I believe it's not fair to the person who dedicated their lives to your company where they needed a few dollars to stand up to feed their families and you turned around and turn your back on them and say no I'm sorry we cannot do that you made that is totally wrong course of this I opened up my own business I I house 19 employees but because of this thing here I could not keep my employees on the payroll but I do what I do is every month I give each of my payroll employees a small monetary gift tax deductible to them so they can buy food for their families and themselves when we're all working together they come back if they want to come back and work with me I'ma manufacturing end I am no more in total sales I have a department that takes care of the sales in my company I am not going to say what I do or how I do it.
They may want to cut their prices. They’ve been out of touch with the economy and country for years. Good luck selling $2100 belts over the next 12 months.
James Garrett My wife used to work for them, before the tariff war the Chinese tourists used to buy $2100 belts but that trend was died down couple yrs ago.
I understand what you are saying....but.....if they 'cut' their prices,,,Neiman Marcus wouldn;t be,,"NEIMAN MARCUS"
Too late. Shut it down!
Honestly, the reason the department store is failing is because majority of the departments in store aren’t in demand. The top departments in Neimans are Men’s and ladies shoes. Everything else is trash. Also when you have a buying team based in Texas buying for your other stores. It’s a recipe for disaster.
Oh no! Where will the super-rich shop? Massive bailout needed for Nieman Marcus! Quick, Prez Chump!
Don’t encourage him
It’s funny because most of the people that shop at Norman Marcus aren’t actually rich. If you take a look at their investments and their bank account, most of them are exceptionally below rich.
@@gavinfeldtman1505 An absolute fact; most rich people try and spend a lot less money on clothes and more money on on making more money rather than spending on textile goods that wont give them more money.
Are they paying this lady? She looks like she hasn't been eating... or maybe she's been living off rationed canned food for months because of covid
She always look like that
You can't pay workers $10/hour and expect anyone to be able to afford to shop at your stores. Wondering why malls and department stores are struggling? Lack of disposable income 🤷🏼♀️
It’s almost like these expensive stores are over rated. Lol
Big business should be more prepared
I never shopped there. I feel sorry for the people that will lose their jobs, but not for a company that focuses on over priced luxury items.
Retail Karma. 🐑🐑🐑
Oh no , where will the trust fund babies spend ridiculous amounts of money on jewelry for their dogs and other such necessities
Well this is what Bill Maher wanted!
Too bad, where would the rich buy their Rolexes and Louis vuittons now, tragedy.
Oh the pathos.
At any Rolex dealer and Louis Vuitton boutiques
No tragedy since Neiman Marcus does not sell those items.
good god EAT A SANDWICH..........
Good god STFU.
What went wrong is these stores inflating their prices to a ridiculous amount nobody could afford for items that were jacked up 10-20x the price of what they should cost. A once affordable luxury store now in the same path of Barneys New York. Greed is destroying retail.
When they liquidate, be sure to buy all you can from them and resell on Ebay.
CNBC, great video! Enjoy your Thursday!💯😍
Ohhh I'm so sad for the rich owners who mark up their prices astronomically. Poor Rich people can't get their 1000$ shirrrrts whahhhhhhhhhh
It’s a shame that this brand is in this position. I remember there was a scene in George of the Jungle where Ursula took George to Neiman Marcus and she allowed George to try on new clothes.
they may be filing during the pandemic, but this was in the works for months before the pandemic. Let's not blame the pandemic for everything. NM was failing for the last couple of years, along with Macy's and Nordstrom's. people are buying on line. I actually typed this before the video started.
Closing still hurts a lot of people who work for them who are not wealthy. Stop with the class warefare. You wouldn't be any different if you were rich.
Woe is me... But seriously? How is this possible when 1 shoe is more than my rent???
As long as VANS don’t file bankruptcy, I’m fine.
Somebody get that lady a couple cheeseburgers 🍔🍔.
Is that your girl in the picture? If so, tell her stop eating cheeseburgers.
Lots of hate comments about a store most people here don’t shop at due to the “ridiculous prices”. Department stores don’t dictate pricing, the vendors do. People whine about Neiman’s being “Needless Markup”, or any luxury department store for that matter. You people honestly think Neiman’s will sell a Gucci slipper for cheap when the actual Gucci boutique sells it a particular price? Department stores have to sell items at the same price points that they’re being sold by the vendors. If the vendors lower prices, then department stores will lower prices. If you think these luxury items are too expensive, there are other options. If you have luxury taste but won’t pay the price to own luxury goods, then you have to adjust to what you can afford and not complain about pricing.
Bite me!
Who cares? For fun take a look at their online site. It's pretty silly.
The next generation is coming into difficult job market so they wont have money for expensive clothing from places like this. After seeing whats been going on people are gonna get real frugal
There will be a lot more bankruptcies coming ! A lot of these stores are over leveraged.
And the execs still think they are entitled to their bonuses.
I have been shopping at Ebay Marcus since the late 1990s.
they better not get a bailout. honestly vast majority of people are not going to miss them.
What a shame, they should have had a rainy day fund instead of being so careless with their money
They really should open up their business to visa, mastercard already if they havent.
Another brick and mortar mortality... I'm surprised they lasted this long. Luxury is a hard online sell.
Never even heard if this company...
They've been around for decades. They cater to those with way more money than sense. They do provide a useful function, parting numerous fools from their money.
James Somraty you are poor that is why😂😂😂😂😂
Old Needless Markup.
please eat, Courtney.
Neiman Marcus is a terribly run business.
Neinan Marcus is an awful department store. Some of the low quality merchandise they have in the stores is a shame. Carrie, Herbert and Abraham would not have allowed this cheap merchandise into their stores.
The staff are terrible, not a smile for anyone.
I'm not surprised
So sorry for J - crew
I did buy some cologne off there site last week I tried
Is it any good?
Walk in Neiman Marcus and spend some light 50 😒
Where are these people filing these reports from....their living rooms?
Ever heard of the corona virus ? , we’re in quarantine.
Please can I get my shoes first
I hope this lady is eating well, her arms look very thin! As for Neiman Mark Up- meh, let them eat cake!
Wont miss it
Neiman Markups is right on the
money. Just looking at the prices
makes me want to see them go down. Do billionaires really shop there? "A fool and his money are soon parted."
Sooo those Leverage Buyout Kings everyone bowed before, they proved to be job destroyers, saving their grandmothers, eating their grandbabies.
Sis needs to come over to my house for some Crisco sammiches
What the hell is a Neiman Marcus and how is this breaking news? Breaking news is only breaking if it affects someone
Welps, as the small business fails, our tax dollars are probably gonna save whom ever is going bankrupt.
I dont even know where a NM is.
This girl is so skinny that she is straining to hold up the script.
Waste of money stores Lol Corona will clean up all these hyper beast money wasters and keep that premium brand product in a small quantity of buyers
Whats wrong with her arms?
But But the Stock market is doing wonderfully!!
Yeah wow
Jesus, I am worried about her than low-budget Newman marcus
She needs to eat
They need a FIRE sale.
Smart !!!!
It was just a matter of time...
Neiman Marcus = Needless Markup
That girl needs to eat.
Who 😲
What I want to know is when trump corporation going to file ,...
Neiman Marcus, more like needless markup!
Jesus this women need some food look her arms 🙈🍔🍔🍔🍟🍟🍔🍔🌭🌭🌭🍤🍤🍕🍕🍕🌮🌮🌮🥟🥟🥓🥓
Courtney needs to try eating for a change.
Hoity-toity joins hoi polloi
Not trying to body shame, but she looks so frail.
Don’t worry.. be happy. Market soaring.. right?
neiman marcus is bankrupt
Very astute observation.
Boo Hoo
Don't care