Neiman Marcus and Saks Fifth Avenue Engage in Merger Discussions — Retail Bum

Neiman Marcus is considering the potential option of being acquired by its main competitor, Saks Fifth Avenue.

The company has been actively searching for a buyer for several months due to a challenging period in its business operations. Alongside its flagship luxury chain, the company also owns Bergdorf Goodman.

Industry insiders project that the retailer, with a history spanning 107 years, might be sold for a figure exceeding $2 billion. This valuation stands at less than half of the $5.1 billion it commanded back in 2005 during the initial stage of a sequence of debt-driven acquisitions that ultimately led to significant financial strain on the company.

As reported exclusively by the New York Post in June 2023, details emerged about ongoing conflicts among Neiman Marcus’ current private equity owners regarding the possibility of exiting the company. Sources indicate that the two minority investors of Neiman Marcus, Davidson Kempner Capital Management and Sixth Street Partners, have been actively pushing for an immediate sale.

However, the primary investor of Neiman Marcus, Pacific Investment Management Co., more commonly recognized as PIMCO, had been inclined to prolong their ownership, contending that the business’s prospects would…