Photo: Wikipedia
Neiman Marcus needs money. The chain, according to a New York Post report, is looking around for an investor or a buyer as soft sales have made it more difficult for the luxury department store operator to pay down debt totaling $5 billion.
The chain, which was acquired in a leveraged buyout by Ares Management LP and Canada Pension Plan Investment Board in 2013, has been hit hard as a result of the energy industry’s woes. Two of Neiman Marcus’ busiest stores are in Dallas and Houston, markets where the energy sector is particularly important to the local economies.
According to the Post article, Neiman Marcus’ CEO, Karen Katz, recently traveled to China to meet with potential buyers, but came home without a deal.
Neiman Marcus posted a five percent decline in same-store sales in its fiscal third quarter, which followed a 2.4 percent decline in comps for the previous quarter.
It doesn't appear that the chain’s faltering performance can be blamed on lack of trying. This past Christmas selling season, the Neiman displayed items from its famed annual Christmas Book at a mall on Long island where it planned to open a store. Last year, it teamed up with The RealReal to offer Neiman Marcus gift cards to customers who consigned their gently used luxury fashions to the site after a referral from a store associate. The chain has also made strides in the use of technology to drive sales in stores and on NeimanMarcus.com.
- Neiman Marcus is looking for a buyer – New York Post
- Neiman Marcus Group LTD LLC Reports Third Quarter Results – Neiman Marcus Group
- Neiman Marcus Group LTD LLC Reports Second Quarter Results – Neiman Marcus Group
- Will displaying fantasy gifts lift Neiman Marcus’ Christmas sales? – RetailWire
- EBay and Neiman Marcus find gold in secondhand clothes – RetailWire
- Will Neiman Marcus’ customers snap, find and shop? – RetailWire