The Neiman Marcus Group became the first major luxury retailer to file for bankruptcy during the COVID-19 crisis.
The Neiman Marcus Group became the first major luxury retailer to file for bankruptcy during the Covid-19 crisis. The company, which also owns Bergdorf Goodman and MyTheresa, came to an agreement with a majority of its creditors for a $675 million debtor-in-possession loan. In addition, the group has committed to a $750 million exit financing package and a long-term refinancing structure that would put off key payments in the company’s already-incurred $4 billion of debt.
It’s a tenuous place for the department store that once represented the most lavish version of American luxury. Founded in 1907, the store was established in Dallas, Texas as the oil industry boomed, making it a hub for the wealthy to exercise their power and style. It was famous for bringing Chanel to the United States, forming an ongoing bond with the label that continues to this day. In 2013, Karl Lagerfeld brought Chanel’s Metiers d’Art collection to Dallas.
Case-in-point: The retailer’s most famous contribution to the fashion canon of late was its holiday season Fantasy Gift Guide, which variously featured a $3.5 million Skycar , a Bellagio-style waterworks installation for $1 million , and a 74-foot, $7.1 million solar-powered yacht . Last year was the first year its Fantasy Gifts were all budgeted at less than $1 million.
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