Neiman Marcus CEO under fire for flaunting mansion amid staff layoffs: report
The chief executive of Neiman Marcus is under fire for flaunting his Texas mansion while the retailer emerges from bankruptcy.
Geoffroy van Raemdonck and his husband, Alvise Orsini, were featured in an 11-page spread for Paper City Magazine this month that showcased their opulent “Italianate-style house," the New York Post reported.
The home sits in the Lakewood neighborhood where the average household income is said to be $138,500, according to the Daily Mail.
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The home is said to be filled with artworks by Andy Warhol, “silk-covered walls” and 18th-century European furniture, the Daily Mail reported.
"In the entry, a grand staircase leading to the bedroom floor is flanked by two large leaded-glass windows, infusing the hall with fold-tinted light like that of a sunset radiating from Venice's Grand Canal," Paper City Magazine wrote in the spread, according to the Daily Mail.
The magazine continued: "Silver and mirrored cabinets from the 1930s, along with hand-painted walls depicting oneiric landscape, create a fantastic portal into an old Hollywood movie set."
Employees weren't enthused.
"He either doesn’t care or he’s tone-deaf," a staff member who preferred to be anonymous told the Post. "Everyone is wondering why [he] agreed to show off the house while health care, bankruptcy and layoffs are the main topics for Neiman Marcus."
Another employee added that "rent is a stretch.”
The spread was reportedly released just before Neiman Marcus Group [NMG] emerged from Chapter 11 bankruptcy on Friday. The company says it emerged in a "much stronger financial position" months after filing for relief in May, although its plans include layoffs.
The company disclosed that it will undergo a restructuring plan that will help the luxury retailer eliminate more than $4 billion of its debt and more than $200 million of cash interest expense annually, with no near-term maturities
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"NMG has emerged with substantially reduced debt, one of the best capital structures among multi-retailers, and enhanced financial flexibility," a company spokesperson told FOX Business. "We are evaluating every part of our business to ensure that the company is positioned for long-term success."
However, part of the company's reorganization of its Neiman Marcus and Bergdorf Goodman stores, which began on Sept. 23, includes separating from "selling and non-selling associates."
The previously furloughed employees who have returned to work are responsible for the thousands of dollars in health insurance premiums that the company covered for them while they were out of work, according to the Post.
"These are difficult decisions we must make at this time and we are so grateful for our dedicated store associates," the spokesperson added. "As we continue to navigate the challenges the pandemic has created, we deeply regret any negative impact to our associates.”
In terms of the medical payments, however, the company says it is in "active discussions with associates who need flexibility on repayment" and is extending the "timeline should they require it."
NMG has also not directed employees to take out loans.
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In March, Neiman began to close stores and was forced to furlough upward of 14,000 workers all while reducing hours and pay for the rest, Dow Jones reported.
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