In its filing, Neiman Marcus said it owed between $1 billion and $10 billion to more than 50,000 creditors, including Monument Consulting ($10.4 million) and Rakuten Marketing ($7.8 million). “The writing has been on the wall for years: Neiman Marcus has an unsustainable amount of debt,” said Steve Dennis, a Dallas-based consultant and former Neiman Marcus executive. Like Neiman Marcus, many of them were purchased by private-equity firms and hedge funds in the mid-2000s, when a booming economy and low interest rates made leveraged buyouts particularly attractive. ADBy the 1970s, it was on a tear, rapidly adding stores in Atlanta, St. Louis, Beverly Hills and Washington, D.C. Today the company has 43 Neiman Marcus stores, 24 Last Call outlets and two Bergdorf Goodman locations. In fiscal year 2018, Neiman Marcus posted a profit of $251 million on revenue of $4.9 billion.

Source: Washington Post May 07, 2020 14:26 UTC