Neiman Marcus hires JPMorgan to explore Bergdorf Goodman sale

Division retailer chain Neiman Marcus has retained JPMorgan to assist it discover its strategic alternate options, together with a attainable sale of its crown jewel, Bergdorf Goodman, The Submit has realized.

A lot of events eyeing the tremendous luxurious Fifth Avenue division retailer have already signed confidentiality agreements for the fitting to glimpse at Bergdorf Goodman’s monetary statements, sources inform The Submit.

The Submit first reported on July 2 that Neiman had been weighing a possible sale of the 122-year-old Bergdorf, a high-fashion mecca that some consultants estimate may fetch upwards of $1.5 billion.  

The strategic overview, which sources say may outcome within the sale of actual property or companies aside from Bergdorf, comes because the Dallas-based Neiman Marcus struggles to get again on its ft after rising from chapter safety in September.

Bergdorf Goodman storefront on Fifth Avenue in Manhattan
Neiman Marcus has employed JPMorgan to assist it discover its strategic alternate options, together with a attainable sale of crown jewel Bergdorf Goodman, sources instructed The Submit.
Getty Photographs

Neiman’s gross sales have been rising amid rebounding demand for luxurious items, however revenues should not but again to pre-pandemic ranges, the Wall Road Journal reported final month.

Neiman CEO Geoffroy van Raemdonck, in the meantime, plans to take a position greater than $500 million over the following three years to refresh shops and enhance digital enterprise, he instructed the Journal.

JPMorgan declined to remark. Neiman declined to handle whether or not it had retained the funding financial institution, issuing as a substitute a press release that reiterated feedback it made following The Submit’s first report a couple of attainable Bergdorf gross sales on July 2.

“We now have no intention nor are we trying to promote Bergdorf Goodman right now,” the corporate mentioned. “We’re strategically investing in our enterprise and our manufacturers with the intention of rising and strengthening the corporate.”

Neiman CEO Geoffroy van Raemdonck poses for a picture at the #BoF500 gala during Paris Fashion Week Spring/Summer 2020 at Hotel de Ville on September 30, 2019 in Paris, France.
Neiman CEO Geoffroy van Raemdonck goals to take a position greater than $500M over the following few years to replace shops and enhance digital enterprise.
Getty Photographs for The Enterprise of

Among the many bidders, as The Submit has beforehand reported, is Ashkenazy Acquisition Corp., which owns the 22-story constructing at 660 Madison Ave., the place luxurious retailer Barneys was positioned earlier than it shuttered in 2019 amid rising rents.

Barneys had been the constructing’s anchor tenant for many years when it shuttered, leaving Ashkenazy with a emptiness drawback that was solely exacerbated by the pandemic. By shopping for Bergdorf, it may fill that gap.

The true property agency, which didn’t instantly return calls and an e-mail for remark, has signed a confidentiality settlement with Neiman Marcus, sources inform The Submit.

Photo of billionaire head of LVMH Bernard Arnault
LVMH, whose billionaire chief, Bernard Arnault, has lengthy eyed the super-pricey Fifth Avenue division retailer simply south of Central Park, sources mentioned.
Bloomberg through Getty Photographs

Additionally within the working for Bergdorf is LVMH, whose billionaire chief, Bernard Arnault, has lengthy coveted the tremendous dear Fifth Avenue division retailer simply south of Central Park, sources mentioned.

The French conglomerate proprietor of Louis Vuitton, Christian Dior and Fendi has additionally signed a confidentiality settlement to take a look at Bergdorf’s books, a supply with data of the state of affairs instructed The Submit.

If LVMH made a proposal, it may search to purchase the true property from the present landlord as a result of the lease for the flagship girls’s retailer expires in 2050 — setting it up for a future lease hike just like the one which doomed Barneys, in accordance with sources. There’s a smaller males’s retailer throughout the road from the flagship. 

A spokesperson for LVMH declined to remark for this story.

Bergdorf Goodman stays Neiman’s solely presence in New York Metropolis because it pulled out of Hudson Yards, the place it briefly opened a Neiman Marcus-branded retailer in 2019 earlier than closing its down for good final 12 months. 

Neiman has been reducing prices usually because it continues to battle with declining gross sales and strained relationships with some high distributors.

In April, it offered among the company artwork assortment assembled by ex-Chairman Stanley Marcus, together with an Alexander Calder cellular that fetched $18.2 million at public sale, in accordance with the Dallas Morning Information. The corporate additionally offered two distribution facilities in Texas in March, the publication reported.

Stanley Marcus (1905-2002) Former President and chaiman of luxury retailer Neiman Marcus is seen circa 2000 in Dallas, Texas.
The corporate has been promoting belongings because it seeks to chop prices, together with artwork aquired by its former Chairman Stanley Marcus, who died in 2002.
Getty Photographs

Neiman erased some $4 billion in debt in its chapter, however continues to be saddled with about $1.1 billion in loans to personal fairness house owners Davidson Kempner Capital Administration, Sixth Road Companions and Pacific Funding Administration, which traded their debt for fairness within the chapter.

“These are distressed-debt house owners and they’re targeted on monetizing their funding and getting their a refund,” one supply mentioned of Neiman’s present possession.

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