Hudson’s Bay in Talks with Neiman Marcus
March 16, 2017,
DALLAS—Luxury department store retailer Neiman Marcus said it is considering strategic alternatives, including the possible sale of its business, and is in talks with Hudson’s Bay Company, according to reports.
“The company is undertaking a process to explore and evaluate potential strategic alternatives, which may include the sale of the company or other assets, or other initiatives to optimize its capital structure, as well as a number of other alternatives,” Neiman Marcus said in a statement that accompanied its second quarter earnings, in which it reported a net loss of $117.1 million. “The company will conduct this evaluation with the assistance of financial advisors. The company cannot provide assurance that the exploration of strategic alternatives will result in the completion of any transaction or other alternative, or regarding the possible terms or form of any such transaction or alternative.”
The Wall Street Journal reported yesterday, citing people familiar with the matter, that Neiman Marcus Group is in talks to sell itself to Hudson’s Bay Co., the Canadian owner of Saks Fifth Avenue, Lord & Taylor and Gilt Groupe. “Hudson’s Bay is seeking a complex and unusual deal that would give it control of Neiman Marcus without assuming the company’s debt,” The Journal reported.
“As a matter of company policy, we do not comment on rumors or market speculation,” said Meghan Biango, senior manager, corporate communications at Hudson’s Bay Company in response to questions about both takeover speculation reports. “Generally speaking, as we have previously stated, we selectively evaluate opportunities to accelerate the company’s strategic growth while maintaining or enhancing its credit profile.”
Neiman Marcus did not respond to HFN’s request for comment at press time.
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