Neiman Marcus May Be in Default: Bondholder

One of Neiman Marcus Group’s (Dallas) investors says the company may be in default on its debt following a shift of its Mytheresa business into a separate entity belonging to the company’s private equity owners.

Marble Ridge Capital LP (New York) Managing Partner Dan Kamensky wrote in a letter, which was viewed by Reuters and was partially made public Friday, that the retailer’s “recent actions threaten the viability of a storied franchise that includes marquee brands such as Neiman Marcus and Bergdorf Goodman.”

The investment firm alleges that the transfer may have made the company insolvent, and it is working with law firm Brown Rudnick LLP to look into the move, and it plans to bring other creditors on board to review the matter.

Neiman Marcus has defended its actions. It publicly announced last week that it moved Mytheresa, its online business, to an entity called Neiman Marcus Group Inc., which is owned by Ares and CPPIB. “This reorganization was expressly permitted by the company’s credit documents,” it said in a statement.