Neiman Marcus Group obtains bankruptcy court approval to access funds
The United States luxury department store chain Neiman Marcus Group (NMG.A) received interim approval of its first day motions on Friday from the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division.
The Court has approved Neiman Marcus Group’s access to debtor-in-possession (DIP) financing of $675 Million from creditors which will enable business continuity during proceedings. The Court also approved motions that support continued operations, including authorizing the company to continue to pay employee wages and benefits.
“We are pleased to receive court approvals of our first day motions, which provide us with ample liquidity to operate the business and allow our dedicated associates, together with our brand partners, to continue providing magical experiences to our loyal luxury customers. This will ensure both our short-term and long-term success as a relationship and digital leader in luxury retail,” Geoffroy van Raemdonck, the Chief Executive Officer of Neiman Marcus Group, said in a statement.
The Marcus and Neiman families decided to pursue a retail venture and opened their first store in Dallas, Texas in 1907. The company expanded across the United States and became a regular fashion go-to for celebrities and wealthy customers seeking expensive handbags and clothing.