After announcing in March that the majority of its 22 Last Call outlets were being cut , the company will also close two of its distribution Kazakhstan WhatsApp Number List centers and lay off around 500 workers and 250 associates in non-commercial positions . According to its official statements, the group is not going into liquidation , which would be particularly difficult during a pandemic, as it plans to recover in the fall of this year. Given the large amount of investments required to resolve the difficulties, the creditors will become the majority owners of the group.
It is simply a process that enables our business to alleviate our debt, access additional capital to run the business in these difficult times, and grow into a stronger business able to serve you better and to continue our long-term transformation. Geoffroy van Raemdonck, CEO of the Neiman Marcus group. Another point that specialists have talked about a lot on the occasion of the change of owner that is looming is the intention attributed to Hudson’s Bay to want to acquire Neiman Marcus Group and combine it with Saks Fifth Avenue to create a juggernaut of retail.
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Faced with numerically nimble competitors, retailer bankruptcies are nothing new. In recent years, companies like Toys “R” Us, Claire’s and Barneys New York have also made headlines with their bankruptcy and blamed digital giants like Amazon for their failures. Yet, as CBC News’ Pete Stevens reported, it could be the debt that affected these companies rather than the competition . According to him, it all starts with a leveraged buyout (LBO) where companies are taken off the stock market for large sums of money. Consequently, for companies like Toys “R” Us and Neiman Marcus, a debt LBO can reach 5 billion with annual interest rates of hundreds of millions of dollars.
companies must then focus more on structures and financial stability levels rather than actual operations. It was during these times that these brands were overtaken by their digital and customer-oriented competitors , such as Amazon and Farfetch. For those who fail to digitize, COVID-19 has made the situation worse. Neiman Marcus is not the first channel to file for bankruptcy during lockdown. The point is, J Crew and True Religion did it before Neiman Marcus . Additionally, JCPenney’s future also looks uncertain as the company faces financial difficulties.
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67 Neiman Marcus stores have been closed in the US since March, in accordance with guidelines established by the Centers for Disease Control and Prevention in response to the COVID-19 pandemic. In such a context of limited physical commerce, it is believed that it is the inability of the company to adapt to the digital age and the new luxury landscape that has led to its failure . In a recent statement, its CEO Geoffroy van Raemdonck confirmed that while Neiman Marcus has made “solid progress” in adapting to the rise of e-commerce , the consequences of the coronavirus have exerted “inexorable pressure” on the market. ‘business.
With all of their stores closing, retail brands like Neiman Marcus are facing a reduction in their upcoming revenues as their debts and overheads continue to rise. The Future of Retail: Connecting the Digital and Physical Worlds For simplicity, we tend to associate the bankruptcy of Neiman Marcus with the end of physical stores. But this is an assumption that we at Hapticmedia do not believe at all. Even in the digital age, physical stores remain key as consumers confess they need “touch and feel” to be part of the experience. With a deep understanding of consumer behaviors, digital giants like Alibaba and Amazon have invested in traditional retail locations that allow the public to interact with products.