Neiman Marcus: A Restructuring Case Study

On May 7, 2020, Neiman Marcus, an iconic luxury retailer, announced in its bankruptcy filing plans to reorganize under Chapter 11 with the backing of most creditors. In this article, we discuss the bankruptcy process and the importance of valuation in bankruptcy proceedings.

Standard of Value in Bankruptcy

The determination of the appropriate “standard of value” when performing business valuations and other valuation related analyses for bankruptcy purposes is critical.  While a standard of value is often specified, it is frequently the case that the specific standard of value is not well defined in either the Bankruptcy Code, applicable state statutes, or in judicial guidance.  Further, the standard of value terminology used in valuations for bankruptcy purposes often differs from the terminology used for other (non-bankruptcy) purposes.

Valuation Considerations in Bankruptcy Proceedings

The outbreak of COVID-19 in the United States has caused a severe public health crisis and an unprecedented level of economic disruption. We discuss the key valuation-related steps of a Chapter 11 restructuring.