Update: Retail Bankruptcy

Neiman Marcus has pushed forward with its bankruptcy proceedings following weeks of speculation about the debt-laden retailer’s future. The company has secured $675 million in financing from creditors to fund operations during bankruptcy proceedings, the statement said. Creditors have also agreed to a $750 million package to create more liquidity. Neiman is aiming to eliminate about $4 billion of debt, and its creditors will become the majority owners of the company. Before the filing, some investors opposed to the bankruptcy had been pushing for a sale. 

In related news, J.Crew files for bankruptcy  After weeks negotiating with lenders, J. Crew has agreed to give control of the company to major creditors including the hedge fund Anchorage Capital by converting $1.65 billion of its debt into equity. This is the latest roundup as I had previously featured stories on JC Penny & CMX Cinemas filing for bankruptcy in previous weeks.

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