For Neiman Marcus, CEO Change Won’t Alter Some Harsh Realities
The new CEO of Neiman Marcus will be settling in Dallas this week, but he won’t have much of a honeymoon. Geoffroy van Raemdonck will succeed retiring CEO Karen Katz and step into a situation that will be challenging. Debt analysts say Neiman Marcus’ $5 billion in debt after two leveraged buyouts is unsustainable. To preserve cash and a line of credit, it’s making interest payments by taking out more debt. The retail environment has been rapidly changing and hasn’t provided many tailwinds. Van Raemdonck, 45, comes to Neiman’s from Ralph Lauren. He has already been making the rounds, visiting with staffers in Dallas in January and Monday and Tuesday in New York at Bergdorf Goodman, the luxury stores also owned by Neiman’s. So far, van Raemdonck has declined to be interviewed. In a prepared statement last month, he called Neiman Marcus “one of the most iconic brand portfolios in fashion retailing” and referenced engaging customers “in new ways.” Read more at The Dallas Morning News.
