HBC, the dad or mum firm of upscale style retailer Saks Fifth Avenue, introduced it will purchase Dallas-based Neiman Marcus on Thursday in a sale value $2.65 billion.
Neiman Marcus was based in downtown Dallas in 1907 and has been a luxurious style chief worldwide ever since, serving to make North Texas an vital hub for high-end attire.
Right here’s what we all know to this point:
The merger of New York-based Saks Fifth Avenue and Neiman Marcus would create an upscale style retail juggernaut.
The brand new mixed firm can be referred to as “Saks World,” per a information launch, and also will embrace Saks OFF fifth, the Saks sister off-price division chain, and Bergdorf Goodman, an iconic New York Metropolis division retailer that the house owners of Neiman Marcus purchased in 1972.
The mixed firm may see about $10 billion in annual gross sales, in response to the Wall Road Journal, and greater than 150 areas.
Amazon has a stake within the acquisition.
Through the pandemic, on-line purchasing and e-commerce thrived. Saks Fifth Avenue was fast to adapt to the brand new dynamic, including digital purchasing appointments with stylists and bettering the net purchasing expertise for purchasers.
That may assist put in context Amazon’s stake within the sale of Neiman Marcus. Amazon will assist “innovate on behalf of consumers and model companions” when the deal is closed, in response to the information launch.
“That is an thrilling time in luxurious retail, with technological developments creating new alternatives to redefine the client expertise, and we look ahead to unlocking vital worth for our prospects, model companions and staff,” mentioned Richard Baker, HBC’s CEO, within the launch.
The shops will proceed to function below their very own model names
Saks Fifth Avenue and Neiman Marcus will retain their respective model names, in response to the information launch, however will function below the bigger “Saks World” umbrella that may even embrace Bergdorf Goodman and Saks OFF fifth, in addition to different Neiman Marcus manufacturers.
The mixed firm may even embrace HBC’s U.S. actual property belongings and Neiman Marcus Group’s actual property belongings, per the discharge, making a $7 billion portfolio of retail actual property belongings in luxurious purchasing locations.
Neiman Marcus climbed out of chapter
The retail big was one of many first main department shops to enter chapter in Could 2020, close to the peak of the pandemic.
Neiman Marcus CEO Geoffroy van Raemdonck wrote in a letter on the time that the corporate would undergo a monetary restructuring to cut back the corporate’s debt load. It’s not but clear what position van Raemdonck could have within the new Saks World.
Department shops, specifically, have been in decline as malls shutter and on-line purchasing thrives, amongst different causes. Retail big Macy’s, as an example, mentioned that it will shutter almost a 3rd of its U.S. areas earlier this yr because it fought with activist investor teams that sought to purchase the corporate.
Richard Marcus historic images
What’s HBC, the dad or mum firm of Saks Fifth Avenue?
HBC is a holding firm with a portfolio of companies that embrace a number of the greatest names in retail, in response to its web site.
The New York-based group is almost all shareholder of corporations like Hudson’s Bay and Galeria Kaufhof, amongst others.
HBC additionally has an actual property and investments portfolio division. The corporate controls both totally or with three way partnership companions about 40 million sq. ft of gross leasable space, per the corporate web site.
Who owned Neiman Marcus earlier than the sale?
The Dallas-based Neiman Marcus Group has been privately held for a number of years and has been purchased and offered a number of instances by huge non-public traders.
Earlier than the transaction with HBC, Neiman Marcus was owned by New York-based hedge fund Davidson Kempner Capital Administration, California-based funding administration agency PIMCO and Sixth Road, additionally an funding agency.
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