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Published
Sep 25, 2020
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Neiman Marcus makes cuts to store staff on way out of bankruptcy

Published
Sep 25, 2020

As Dallas, Texas-based department store operator Neiman Marcus emerges from bankruptcy, it has announced that it is reducing its retail workforce as part of a review of its business.


Neiman Marcus filed for Chapter 11 bankruptcy in May - Reuters

 
According to Bloomberg, the company revealed that it began layoffs of store associates on Wednesday, following a reorganization of staff at both its namesake Neiman Marcus and Bergdorf Goodman locations.
 
“We are evaluating every part of our business to ensure that the company is positioned for long-term success,” said the company in a statement. “We plan to separate from selling and non-selling associates.”

The retailer has not revealed how many employees will be affected by the cuts but did say that some new positions will be created through the introduction of new customer service and personal styling roles.
 
Neiman Marcus filed for Chapter 11 bankruptcy in May of this year and expects to emerge from the process by the end of this month with a restructuring plan intended to eliminate more than $4 billion of the company’s debt.
 
In July the department store retailer announced that it would be closing its recently opened flagship location in Manhattan’s Hudson Yards, along with 20 other locations, leaving the company with a total of 44 stores.
 
Neiman Marcus’ descent into bankruptcy was one of a number of Chapter 11 filings made earlier this year as the Covid-19 pandemic took its toll on retailers. Other victims of the financial troubles caused by the coronavirus crisis included J.C. Penney, J. Crew, Brooks Brothers, and Ann Taylor parent company Ascena Retail.

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