Neiman Marcus Adds Fifth Store to Closures List + More Bankruptcy Developments
Neiman Marcus is back in the headlines.
In a court filing on Friday, the department store added a fifth location to its brick-and-mortar closures as part of its Chapter 11 reorganization. Its 130,000-square-foot outpost in the Mazza Gallerie shopping center in Washington, D.C., is set to shutter, along with the previously announced units at Bellevue, Wash., as well as those in Fort Lauderdale and Palm Beach, Fla., plus its massive Hudson Yards store.
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What’s more, hedge fund Marble Ridge Capital LP confirmed with FN that it plans to shut down after the United States government found that managing partner Dan Kamensky attempted to interfere with Neiman Marcus Group Inc.’s bankruptcy auction. In a letter to clients that was obtained by multiple media outlets, the investment firm announced that it would “wind down” its funds and “manage the liquidation in the best interests of our investors.”
The shutdown follows an investigation into Marble Ridge’s business by the Department of Justice’s U.S. Trustee division. On Thursday, reports emerged that Kamensky admitted a “grave mistake” to the agency, which oversees bankruptcies, in an attempt to suppress bidding for certain assets of the bankrupt chain. (Marble Ridge has repeatedly called itself as Neiman Marcus’ largest single unsecured creditor as of the department store’s bankruptcy filing.)
Neiman Marcus declined to comment on the matter involving Marble Ridge.
On May 7, Neiman Marcus — whose pressures have been years in the making — went bankrupt following weeks of speculation as the coronavirus pandemic forced the temporary closures of its Neiman Marcus, Last Call and Bergdorf Goodman banners across the country.
Now, as it seeks an exit from Chapter 11 proceedings, the Dallas-based chain aims to alleviate its debt load. It confirmed in late July that it would shutter the four aforementioned locations, as well as 17 Last Call outlets, out of its current 43-unit fleet. As part of its restructuring, Neiman Marcus has secured $675 million in debtor-in-possession financing to continue operations as it gradually reopens stores, invests in fall inventory and funds the expansion of its digital platforms.
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