Neiman Marcus, a symbol of luxury and decadence, filed for chapter 11 bankruptcy protection on Thursday in Texas.

  • Neiman Marcus Chief Executive Geoffroy van Raemdonck said in an interview, “We had a business that was on track prior to Covid-19. Everything was going well in our transformation, but we had massive interest payments. Covid threw everything off track. This is an opportunity to reset our financial structure.”
  • The bankruptcy seeks to eliminate $4 billion of roughly $5.1 billion in debt.
  • Creditors will become majority owners of the retailer, which has been controlled by private equity firms.
  • Neiman says it isn’t planning mass store closings or asset sales as part of the restructuring.