A Split Decision for Neiman Marcus Debt Holders
- Author: Eleanor Harrison Mar 15, 2017,
Mar 15, 2017, 0:40
The numbers revealed that sales at stores open for at least a year fell 6.8% while it recorded a net loss of $117.1m in the period, a figure that was hampered by a write-down in value of its brand and other assets by $153.8m during the quarter. The company was forced to call off plans for an initial public offering in January.
Neiman, which also operates Bergdorf Goodman, said it had set no timeline for its evaluation process and could give no guarantee that it would result in a transaction.
Hudson's Bay (OTC:HBAYF) is in talks to buy Neiman Marcus (NYSE:NM) from its private equity owners, sources tell The Wall Street Journal.
Earlier this year another luxury retailer, Hudson Bay, the owner of Saks and Lord & Taylor in the United States and Galeria Kaufhof and Galeria Inno in Europe, made a bid for another old-line USA retailer, Macy's, a source told CNNMoney at that time.
Standard & Poor's also recently downgraded its credit rating on Neiman from B-minus to triple-C-plus, which is junk status.
Comparable sales dropped 6.8% in the second quarter.
Luxury retailer Neiman Marcus may sell itself, in another blow to traditional brick-and-mortar retailers.
The strong US dollar is also hurting sales, Katz said, noting that Neiman Marcus has seen a drop in foreign shoppers in cities such as New York, Miami and Las Vegas.
Neiman Marcus is one of a number of department stores that have run into financial problems in recent years as more and more consumers embrace online shopping. The company has been opening in-store boutiques to let customers rent clothes and accessories.