Neiman Marcus laid off 500 employees, or 3 percent of its workforce
CEO Karen Katz said no sales associates have been let go and all the job cuts are in corporate and support positions. The cuts were throughout the company including distribution facilities.
“Even as we adjust our course, our mission is unchanged,” Katz said. “ Every employee of Neiman Marcus Group has a single focus: our customer. We remain dedicated to serving them by offering the most incredible luxury and fashion merchandise in the world’s most beautiful stores and dynamic websites.”
The reorganization has been in the works for several months, she said in a phone interview Thursday.
Katz didn’t provide a dollar amount of the cost savings, but said the reorganization will allow the company to continue to invest in future growth such as the acquisition last year of German luxury retailer MyTheresa and new and remodeled stores. A new store under construction in Long Island opens in February. Two more stores have been announced: Fort Worth in 2017 and Hudson Yards in Manhattan in 2018.
“We have undertaken an initiative called organizing for growth, the goal of which is to improve the ways we run our business and to accelerate investments in the customer facing initiatives that drive future growth,” she said.
Analysts regard Neiman Marcus as a well-run company, but two expensive leveraged buyouts by private equity investors in the last 10 years have left it with a big debt burden.
Neiman Marcus filed its first paperwork for an IPO in early August with a $100 million placeholder amount. Analysts now believe the company plans to raise in the range of $800 million to $1 billion
Katz declined to answer any questions about the IPO.
Last week, Neiman Marcus reported a loss in its fiscal fourth quarter, but posted a full-year profit. For the year, Neiman Marcus topped $5 billion for the first time with fiscal 2015 sales of $5.1 billion.
Money raised from an IPO could help the retailer pay down some of its $4.55 billion in debt. The company paid $290 million in interest on its debt last year and $3 billion of its debt is floating debt.