(Bloomberg) -- 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 Oct. 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 chief executive officer 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.
As Orvos departs, the company is adding to its executive team, appointing Lana Todorovich as its new president and chief merchandising officer. Prior to Neiman, Todorovich was president of North America Wholesale at Ralph Lauren, president of Women’s Apparel Group at Global Brands Group and president at Perry Ellis International, according to a company statement.
Neiman Marcus is under pressure as consumers go online instead of going to department stores. The retailer said same-store sales fell fell 1.5% in its fiscal third quarter ended April 27 from a year earlier, citing heavy promotional pricing and a slowdown for some of its top 50 brands. The earnings report listed about $4.5 billion in long-term debt.
The company bought itself more time for a turnaround after it completed a debt exchange that extended the due dates. Neiman 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 center of a dispute with creditors since the unit was effectively transferred out of bondholders’ reach last September.
The retailer’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. The unsecured notes have fared worse, with the third-lien bonds due October 2024 trading around 33 cents on the dollar, according to Trace bond price data.
Neiman’s debt load stems from two buyouts by private equity firms. The most recent 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 last year, is overhauling senior management. Departures have included 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.
(Updates with company’s new president and chief merchandising officer in the fifth paragraph)
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