Bankruptcy court approves Neiman Marcus' plea to access financing

The Dallas-based retailer plans to cede control to creditors in exchange for eliminating $4 billion of debt. Its debt currently totals about $5 billion

U.S. luxury department store chain Neiman Marcus Group said on Friday it received court approval to access $675 million of its debtor-in-possession financing, which will allow continuity of the company's business during Chapter 11 bankruptcy proceedings and enable it to pay employees and vendors.

The interim approval of its 'first day motions' from the Bankruptcy Court for the Southern District of Texas, Houston Division, came a day after the company filed for bankruptcy protection, marking one of the highest-profile collapses yet among retailers forced to temporarily close stores in response to the COVID-19 pandemic.

Neiman Marcus filed for bankruptcy in a federal