America’s luxury retailer is not winding up and anticipates to rise from restructuring later this year.
In March 2019, the high-end retailer Neiman Marcus opened its first outpost in Manhattan. This store was of 188,000 square feet and was spread over three floors, which was an anchor tenant of the Hudson Yards development, the brand’s chief executive called it as the novel kind “retail theater”. This store gloried live cooking, fitting rooms complete with interactional touch screens, in-house aestheticians, and mixology displays.
Geoffroy van Raemdonck, the executive worked for a year in this company and had already recruited a lot of new executives inclusive of Bergdorf Goodman, chief for the brand’s other gem in New York. In a late November interview with The New York Times, he mentioned that each of the newly recruited staff has “a passion for transforming our business.”
Mr. Raemdonck even said, “They all believe that not only are we going to delight our customers by bringing to them unique and curated experiences, but they really believe that we are traveling a new course for how the retail industry and department store are transforming themselves.”
On Thursday, all of that came to a sudden halt when Neiman Marcus became the first major department store group to file for bankruptcy protection during the ongoing global pandemic. It is a stunning fall that follows the downfall of Barneys New York late last year and comes as shadows gather over chains similar to J.C. Penney and Lord & Taylor.
In the U.S. Bankruptcy Court for the Southern District of Texas, the company filed for Chapter 11 restructuring procedure. In a letter to customers, Mr. Raemdonck highlighted that the business was not winding up and that it intends to reopen stores once it is risk-free to do so. He added, “This is simply a process that allows our company to alleviate debt, access additional capital to run the business during these challenging times, and emerge a stronger company with the ability to better serve you and continue our transformation over the long term.”