Niemann, The Largest Luxury Goods Department In The United States, Cracked Down On Bankruptcy Risk

Neiman Marcus Group Ltd LLC Niemann Marcus, one of the largest luxury department stores in the United States, has hired Lazard Ltd. (NYSE:LAZ) of the investment bank to restructure up to $4 billion 900 million in debt, but it is not at risk of bankruptcy.

Nyman Markus, Neiman Marcus Group Ltd LLC, later issued a statement saying that she did not comment on rumors and speculation, but said that it was customary for consultants to assess opportunities to create long-term value for partners, customers and shareholders, and will continue to do so in the future.

In 2013, Ares Management LLC (NYSE:ARES) and CPPIB (Canada Pension Plan Investment Committee) spent $6 billion to acquire leveraged buyout of the TPG Capital LP and Warburg Pincus LLC Huaping investment group, Nyman Markus.

According to website data, as of October 29, 2016, this long-term liabilities amounted to $4 billion 417 million 600 thousand.

Last month, Standard & Poor 's Financial Services LLC Standard & Poor's Neiman Marcus Group Ltd LLC Nyman Markus's debt rating dropped from 3 to a junk level, and the S & P pointed out that the group's ability to generate sales growth has deteriorated, and the department store industry is one of the most challenging industries. Its analyst said that the outlook for all department stores is negative.

"In the long term, Neiman Marcus Group Ltd LLC, Nyman Markus's capital structure is not sustainable", coupled with weak market traffic, highly promoted retail environment and prudent consumer spending will limit the recovery of core earnings EBITDA.

Facing the current challenges, the group is still planning to expand. One of its new stores will be located in New York's largest private real estate development project, Hudson Yards, and the group is also refurbishing existing stores.

Website data display Neiman Marcus Group Ltd LLC

Sales have dropped for 5 quarters, and the same store sales have plunged 8% in the first 2017 quarter of fiscal year, and net income has decreased by 7.4% to 1 billion 79 million 100 thousand dollars compared with the same period last year.

Moreover, in the past 5 quarters, the group was not a profit slump or a loss. In the fourth quarter of 2016 fiscal year, it also recorded a huge net loss of $406 million 100 thousand due to goodwill, trade names and other long-term assets impairment losses, while the net loss in the first quarter of fiscal 2017 doubled to $23 million 513 thousand in the 2016 quarter.

The chief executive, Karen Katz, said that he was "very disappointed" with his performance in the performance conference in December 2016. She pointed out that all aspects of the group's business were challenged. Not only the frequency of the old customers had dropped, but also the US presidential election and the low oil price (the group had 6 stores in Dezhou, which was also a major oil city), and the currencies such as sterling, euro and Renminbi weakened against the US dollar, which weakened the consumption of international tourists.

Ares Management LLC (NYSE:ARES) and CPPIB are eager to get rid of Neiman Marcus Group Ltd LLC Nyman Markus, but huge debts and difficult turnover will make it difficult for them to find buyers. The Group officially cancelled the listing plan submitted in August 2015 earlier this year.

Last year, the market once came out of China's Ampang insurance.

News, but the industry believes that the most logical answer is the Canadian retail group Hudson 's Bay Co. (TSE:HBC) Hudson Bay Group.

In recent years, the group has opened up international markets and online channels, and has acquired the Saks Inc. and the German chain of luxury department stores.

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Hudson 's Bay Co. executive director of Hudson Bay Group, Richard Baker, has always coveted and has the top quality department store Bergdorf Goodman and the Neiman Marcus of the same name department Neiman Marcus Nyman Markus group.

Analysts have always believed that Neiman Marcus Group Ltd LLC Niemann Marcus must restructure its balance sheet.

Lazard Ltd.'s expertise lies in the restructuring and capital structure adjustment outside the courtroom, as well as the bankruptcy consultant.

Last year, the bank helped the toy retailer TOYS "R" US Inc. toy R & D to restructure its debts.

Nyman Markus, Neiman Marcus Group Ltd LLC, will announce its two quarter earnings in March 14th.

In the past few months, the group has adopted cost cutting measures including layoffs.

At present, the group has 42 Neiman Marcus Marcus stores, two Bergdorf Goodman department stores, 27 Last Call discount department stores and 3 e-commerce websites.

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