Neiman Marcus Palm Beach Gardens Fl
When Neiman Marcus opened a store on Worth Avenue it was the talk of the town. Now it's the talk of the town again, but only because it will soon be shutting down the island location.
Neiman Marcus is the latest retailer to fall victim to the consequences of the coronavirus pandemic, filing for Chapter 11 bankruptcy a couple months ago. Last week, the luxury retailer announced it is leaving Worth Avenue and is looking for a tenant to take over its lease.
The department store was struggling before the pandemic, which proved to be disastrous to an already indebted Neiman Marcus Group. After two months of national mandatory store closures, the luxury behemoth filed for Chapter 11 bankruptcy on May 7. As part of the court proceedings, Neiman provided a list of four national stores that will close its doors permanently.
"The Palm Beach location was one of those," a Neiman Marcus spokesperson said via email. "We have not determined an exact closing date, but the plan is to close by fall."
Last week, A&G Real Estate Partners, working on behalf of Neiman Marcus Group in the retailer's bankruptcy proceedings, announced it's taking bids for the lease on the 48,661-square-foot Worth Avenue store. The current lease expires May 31, 2026, but has long-term, multiple-option leases available through 2051.
The other permanent store closures are in Washington, D.C.; Walnut Creek, California; and Bellevue, Washington.
"Real estate is a long-term play. These leases represent an incredible opportunity for retailers and investors to gain a foothold in markets that, under normal conditions, are renowned for their traffic and sales — as well as for their high barriers to entry," A&G co-President Emilio Amendola said in a statement. "Additionally, some of these locations are particularly promising for conversion to hotel, office or residential use."
According to Palm Beach County records, the Worth Avenue property is owned by an entity affiliated with New York-based O'Connor Real Estate Advisors, which purchased it for $40 million in January 2014.
The Worth Avenue store opened 20 years ago in a new building located at 151 Worth Ave. The grand opening wowed Palm Beachers with its decor of 10,000 albino butterflies and coin-size mirrors above its escalator. Tatiana Faberge of France, great-granddaughter of the famous jeweler who designed for the Russian aristocracy, was there to greet guests.
Over time, the luxury retailer has invited numerous high-end designers to the store for exclusive shopping experiences and charity events. It also has produced some of the island's biggest fashion shows, such as Breast Cancer Research Foundation's Luncheon & Symposium, and featured designers such as Monique Lhuillier, Zac Posen, Carolina Herrera and Oscar de la Renta.
Neiman's announcement arrives on the heels of its stores reopening after a two-month mandatory closure caused by the coronavirus pandemic. The company's Worth Avenue store and 42 others, including its Bergdorf Goodman locations and Last Call outlets, closed March 17. Store closures were extended through May 31, with many employees furloughed until Palm Beach finally reopened July 22.
The retailer announced its bankruptcy filing on May 7 with a statement saying it had entered into an agreement with the majority of its creditors to undergo a financial restructuring to "substantially reduce debt and position the company for long-term growth." As of April 2019, Neiman Marcus listed in filings about $5 billion in long-term debt and expected to eliminate $4 billion of that debt upon emergence.
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The statement also said the Neiman Marcus Group received $675 million in financing from creditors to keep running the business, as well as $750 million to get out of bankruptcy by "early fall."
"Prior to COVID-19, Neiman Marcus Group was making solid progress on our journey to long-term profitable and sustainable growth," Chairman and Chief Executive Officer Geoffroy van Raemdonck said at the time. "However, like most businesses today, we are facing unprecedented disruption caused by the COVID-19 pandemic, which has placed inexorable pressure on our business."
Neiman Marcus is not the only department store to fall victim to the consequences of the coronavirus pandemic. Most recently, Ann Taylor's parent company, Ascena Retail Group Inc., filed for bankruptcy with plans to permanently close up to 1,600 stores, behind other retailers Brooks Brothers Group Inc., J.C. Penney Co. and J.Crew Group Inc.
ctrivino@pbdailynews.com
@MindofCarlita
Source: https://www.palmbeachdailynews.com/story/news/local/2020/07/24/neiman-marcus-to-leave-worth-avenue-in-palm-beach/112362054/
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