NEW YORK, United States — Neiman Marcus Group Inc. will get another chief financial officer for the second time in two years when Adam Orvos steps down next month to pursue a job with another company.
The luxury retailer is in the process of naming a successor, but Orvos will remain at the company until October 11 to help with the transition, according to a Neiman Marcus representative.
Orvos has been in the job less than 18 months, after joining Dallas-based Neiman in April 2018. He assumed the CFO role from Dale Stapleton, who was interim CFO since June 2017. Before Neiman, Orvos was CEO at Total Wine & More, according to a company release at the time.
“Adam led and guided us through our debt refinancing, which was recently completed and has provided us ample runway to execute on our transformation,” Geoffroy van Raemdonck, Neiman’s CEO, said in a statement sent to Bloomberg.
Neiman Marcus has been fighting to boost results as consumers shy from department stores in favour of websites, such as Amazon.com. Neiman reported in June that same-store sales fell 1.5 percent in the third quarter ended April 27 from the same period last year. This was driven by a promotional environment and a slowdown for some of Neiman’s top 50 brands, the company said in an earnings call. As of the third-quarter report, Neiman had about $4.5 billion in long-term debt.
Neiman bought itself more time for a turnaround after it completed a debt exchange that pushed out maturities on its debt load. The company also said in April it’s considering strategic alternatives for its German online unit MyTheresa, without specifying what they might be. MyTheresa has been at the centre of a dispute with creditors since the unit was effectively transferred out of bondholders’ reach last September.
Neiman’s debt load stems from two buyouts by private equity firms. The most recent deal was struck in 2013 when Ares Management LLC and the Canada Pension Plan Investment Board acquired the company for around $6 billion.
Raemdonck, who took over the top job at Neiman last year, is overhauling senior management as some long-time executives depart. Among them are President and Chief Merchandising Officer Jim Gold, according to a regulatory filing, as well as the executive vice president for Neiman Marcus stores, according to the Dallas Morning News.
Neiman’s first-lien term loan has given back most of its gains since the debt swap in June, trading around 82 cents on the dollar, according to pricing data compiled by Bloomberg. The unsecured notes have fared worse, with the third-lien bonds due October 2024 trading around 33 cents on the dollar, according to Trace.
By Katherine Doherty; Editors: Rick Green, Nicole Bullock