Dallas chain trims more staff

Pandemic has left a smaller Neiman Marcus

Neimanmarcus is exiting its bankruptcy with a smaller workforce.

Significant staff cuts at its Neiman Marcus and Bergdorf Goodman stores have started thisweek. The company didn’t say how many people are permanently losing their jobs.

“We plan to separate from selling and nonselling associates,” the Dallasbased luxury retailer said in emailed statement. “These are difficult decisions we must make at this time, and we are so grateful for our dedicated stores associates.”

While the company was able to shed $4 billion in burdensome debt as a result of its bankruptcy reorganization, at the same time, the pandemic has left it a smaller business. It’s going to take a couple of years for sales to recover to the pre-pandemic level of almost $5 billion.

Before it filed for bankruptcy inmay, Neimanmarcus had more than 14,000 employees. That number has dropped by at least a couple thousand as the company has closed 17 Last Call stores since then and corporate jobs tied to the discount chain.

As part of its reorganization, it rejected seven fullline Neiman Marcus store leases and has been in the process of closing those stores, resulting in permanent job losses.

Some locations are already closed, including Hudson Yards in New York City, which had been open only since March 2019. Two stores in Florida, in Fort Lauderdale and West Palm Beach, and its store in Washington, D.C., have also closed.

Neiman Marcus hasn’t

reopened its store in Honolulu, and it notified the state of a permanent “mass layoff” this week, saying there’s no realistic prospect for store revenues to recover to a sustainable level in the foreseeable future. The last day of work for the Hawaii staffwas Thursday, but they will receive pay and benefits through Nov. 25.

The additional overall store cuts are part of amove creating new positions that include “service ambassadors, digital client advisors

and personal stylists,” the company said in the statement. The new jobs will “better serve our customers,” the company said. “This is reflective of our unique integrated retail experience as we continue our path to be the pre-eminent luxury customer platform.”

Among the store staff cuts are at its restaurants that have been part of the retailer’s in-store ambiance and a tradition for families, especially during the Christmas shopping season.

The company’s in-store Zodiac, NM Caf, Mariposa

and Mermaid Bar restaurant operations also include a big catering business. Since the pandemic started, restaurants have remained closed and some have operated takeout service.

“As we did with the reopening of our stores, we look forward to reopening our restaurants again, slowly and safely in phases,” said Amber Seikaly, vice president of corporate communications. “Over time, we’ll be able to rehire many of our talented food and beverage associates and add more staffing based on business needs.”