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HBC to Buy Neiman Marcus and Combine It with Saks Fifth Avenue
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The owner of the Saks Fifth Avenue is close to acquiring Neiman Marcus Group for $2.65 billion, according to a person familiar with the matter — a deal that would unite the two largest luxury department store chains in the United States in a bid to grab a bigger slice of a slowing industry.
Amazon.com Inc. It is Salesforce Inc. will be helping to facilitate the deal for the Saks owner Hudson’s Bay Company The technology companies will take minority stakes in a new company, called Saks Global, according to the person. Hudson’s Bay will also finance the deal with $2 billion raised from investors, the person said.
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Representatives for Hudson’s Bay and Amazon declined to comment. Salesforce did not immediately respond to a request for comment.
The combined department store operations would consist of 39 Saks Fifth Avenue stores and 36 under the name of its Dallas-based rival, as well as two Bergdorf Goodman stores in Manhattan. Both chains also have outlet stores. The deal is intended to cut costs and increase profitability by giving the combined company bargaining power with suppliers and reducing supply chain and other shared costs.
The deal is the culmination of on-and-off talks between the two privately held competitors over the past decade and a half. The combination of a recent slowdown in luxury sales and Neiman’s bankruptcy in 2020 has allowed Neiman to shed billions of dollars in debt, making it a more attractive target.
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The Wall Street Journal previously reported the deal.
—With help from Spencer Soper and Brody Ford.
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