Neiman Marcus Group Ltd., the luxury department-store chain that filed for bankruptcy last week, expects to burn through $300 million before it can reopen its stores, WSJ Pro Bankruptcy reported. At a hearing on Friday in the U.S. Bankruptcy Court in Houston, Neiman adviser Tyler Cowan said that the overall cash burn is forecast to reach $370 million by the end of July. The chain, one of the first big retailers to file for bankruptcy amid the coronavirus pandemic, closed its stores in March, furloughing many of its 14,000 employees and reducing hours and pay for the rest. At the hearing, the retailer’s first after filing for bankruptcy, Judge David Jones signed off on a $675 million bankruptcy loan, provided by the company’s biggest lenders and bondholders to finance the bankruptcy process. The lenders providing the debtor-in-possession loan include Pacific Investment Management Co., Davidson Kempner Capital Management LP and Sixth Street Partners LLC. The three funds together hold more than $1.6 billion of Neiman’s $2.9 billion in term loans, court filings show.
