Neiman Marcus Brings Back MyTheresa, Extends Debt Maturities in Turnaround Push
Neiman Marcus has reached a substantial agreement, consenting to revert its e-commerce arm, MyTheresa, as part of discussions with the majority noteholders and term lenders. The action extends debt maturities by three years, affording the retailer crucial breathing space.
The pact, brokered by legal teams from Weil, Gotshal & Manges LLP and Kirkland & Ellis LLP, involves the transfer of MyTheresa back to Neiman Marcus. This transfer is a pivotal aspect of the ongoing negotiations.
Neiman Marcus has been pursuing a turnaround strategy, codenamed 'Project Rolex'. The audacious plan aims to elevate total sales to $5 billion and adjusted EBITDA to $700 million within five years. The company anticipates a 0.5% to 1% increase in comparable U.S. revenue for the second fiscal quarter ended Jan. 26.
MyTheresa, which Neiman Marcus acquired in 2014, has proven to be a lucrative asset. In fiscal 2018, it generated approximately $345 million in group revenue and attracted 177,000 new customers.
While the agreement extends Neiman Marcus' debt maturities, the retailer still contends with a lawsuit from creditor Marble Ridge concerning the transfer of MyTheresa. Despite this, the return of MyTheresa and the ambitious targets set by 'Project Rolex' signify a dedication to recovery and growth.
