Neiman Marcus Group Inc. was hit with a lawsuit in New York by UMB Bank that accused the private equity firm that controls the company of trying to elude creditors by changing the corporate structure of the retailer’s “crown jewel” asset, the online retailer MyTheresa.
According to the suit, the trustee for certain debt Neiman’s has issued, Ares Partners moved the MyTheresa subsidiaries in 2018 to another entity, even though the online shopping retailer was essentially serving as an asset that backed the Neiman’s debts. The MyTheresa subsidiaries were valued at roughly $1 billion, according to a valuation in March by Goldman Sachs.
The debts come from the effort to fund the retailer’s 2013 leveraged buyout by Ares and the Canada Pension Plan Investment Board, according to the suit, which was filed in state court in New York.
“There was no business purpose for the unlawful transfers: their intended result was to place MyTheresa into entities beyond the reach of the company’s creditors, including holders of the unsecured notes, to hinder and delay creditor recovery,” UMB said in the suit.
This isn’t the first time Neiman’s has been sued over this controversial transfer of MyTheresa assets. Marble Ridge Capital claimed in a lawsuit in