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.