Neiman Marcus May Go Up For Sale
By Chris Isidore
PHILADELPHIA (CBS) -- Luxury retailer Neiman Marcus may sell itself, in another blow to traditional brick-and-mortar retailers.
The company was forced to call off plans for an initial public offering in January.
Study: People Think They're Nicer Than They Actually Are
Unlike some traditional retailers such as Macy's, JCPenney and Sears, Neiman Marcus hasn't had to announce a lot of store closings recently. It has 42 Neiman Marcus locations and two stores under the Bergdorf Goodman brand. But is has struggled.
It disclosed the potential sale Tuesday morning when it reported poor financial results, including a $120 million operating loss in the three months ending in January, and the sixth straight quarter of declining sales.
It also reported $6.4 billion in long-term debt and other liabilities. It's debt had been trading at about 50 cents on the dollar even before Tuesday's announcement. "The debt market is clearly not too bullish about its chances," said Anthony Canale, head of high yield research at Covenant Review.
The company was purchased in 2013 by private equity firm Ares Management and the Canada Pension Plan Investment Board.
Snowplows, Troopers Escort 23-Month-Old In Need Of Heart Transplant To Hospital During Winter Storm
Earlier this year another luxury retailer, Hudson Bay, the owner of Saks and Lord & Taylor in the United States and Galeria Kaufhof and Galeria Inno in Europe, made a bid for another old-line U.S. retailer, Macy's, a source told CNNMoney at that time.
The Wall Street Journal reported Tuesday that Hudson Bay is interested in buying Neiman Marcus, although neither company had a comment on that report.
The-CNN-Wire ™ & © 2017 Cable News Network, Inc., a Time Warner Company. All rights reserved.
