Neiman Marcus, a prestigious luxury department store headquartered in Dallas, Texas, has enlisted the help of A&G Real Estate Partners to oversee the marketing of leases for four of its locations as part of a strategic financial move brought on by the challenges of the Covid-19 pandemic.
In a bid to enhance its financial stability following the Chapter 11 bankruptcy filing in May, Neiman Marcus has already initiated the process of shuttering the majority of its Last Call stores and is contemplating the closure of select full-line locations. A&G Real Estate Partners has been assigned the task of promoting the leases for Neiman Marcus stores in California, Florida, and Washington DC.
The expiration dates for the leases range from 2026 for the Palm Beach store to 2040 for the Bellevue location. Each lease includes extension options, with the Walnut Creek store offering the remarkable possibility of an extension up to 2112. A&G views these leases as valuable due to their long-term and flexible nature, suggesting that some locations could be repurposed for uses such as hotels, offices, or residential spaces.
A Neiman Marcus spokesperson emphasized to The Dallas Morning News that the company is continuously assessing its store portfolio to ensure it complements its revenue and profitability goals while bolstering its omnichannel strategy. It was made clear that promoting the leases of specific locations does not definitively mean closure, but rather a tactic to generate value from the leases.
Following the Chapter 11 filing, Neiman Marcus secured approval for a $675 million debtor-in-possession (DIP) financing arrangement in June to support its operations during the bankruptcy process. The retailer, grappling with a hefty $5 billion debt from two leveraged buyouts in the past decade, is aiming to restructure its post-emergence capital structure to eliminate approximately $4 billion in existing debt without significant future debt obligations.
To learn more about Neiman Marcus’s latest financial moves, you can visit their official website here. Additionally, for updates on the real estate market trends, visit A&G Real Estate Partners’ website here.
