Division retailer chain Neiman Marcus has retained JPMorgan to assist it discover its strategic options, together with a potential sale of its crown jewel, Bergdorf Goodman, The Put up has discovered.
Plenty of events eyeing the tremendous luxurious Fifth Avenue division retailer have already signed confidentiality agreements for the proper to glimpse at Bergdorf Goodman’s monetary statements, sources inform The Put up.
The Put up 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 assessment, which sources say may outcome within the sale of actual property or companies apart from Bergdorf, comes because the Dallas-based Neiman Marcus struggles to get again on its toes after rising from bankruptcy protection in September.
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 advised the Journal.
JPMorgan declined to remark. Neiman declined to deal with whether or not it had retained the funding financial institution, issuing as an alternative an announcement that reiterated feedback it made following The Put up’s first report a couple of potential Bergdorf gross sales on July 2.
“We’ve got no intention nor are we seeking to promote Bergdorf Goodman presently,” the corporate mentioned. “We’re strategically investing in our enterprise and our manufacturers with the intention of rising and strengthening the corporate.”
Among the many bidders, as The Post has previously reported, is Ashkenazy Acquisition Corp., which owns the 22-story constructing at 660 Madison Ave., the place luxurious retailer Barneys was positioned before 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 downside 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 Put up.
Additionally within the operating 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 advised The Put up.
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 chopping prices usually because it continues to battle with declining gross sales and strained relationships with some top vendors.
In April, it bought a number of the company artwork assortment assembled by ex-Chairman Stanley Marcus, together with an Alexander Calder cell that fetched $18.2 million at public sale, in accordance with the Dallas Morning Information. The corporate additionally bought two distribution facilities in Texas in March, the publication reported.
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.