According to reports, the luxury retailers Neiman Marcus and Saks Fifth Avenue are in talks to merge.
According to the New York Post, which cited anonymous sources on Monday (Aug. 28), Neiman Marcus has been aggressively seeking a buyer due to a slump in its company.
According to the article, Neiman Marcus, which owns not only its eponymous luxury brand but also Bergdorf Goodman in New York, has been struggling in recent years, with sales declining amid a drop in luxury spending. This year, in fact, Neiman Marcus had its worst fiscal year since its bankruptcy in 2020.
According to the story, the luxury retailer is expected to sell for roughly $2 billion, which is far less than the price it fetched in 2005, during a series of debt-fueled buyouts that finally doomed the corporation. Previously, Neiman Marcus’ current private equity owners were divided on a potential exit, with minority investors seeking a rapid sale and the majority investor claiming that the business will improve.
The source claims that Saks Fifth Avenue, which is owned by Hudson’s Bay Co., made two unsuccessful attempts to buy Neiman Marcus in the past ten years due to the astronomical price tag. However, the talks appear to be progressing this time, with Hudson’s Bay doing exclusive due diligence on Neiman Marcus.
