Report: Neiman Marcus Hired Banks to Lead IPO

Neiman MarcusDallas—The owners of Neiman Marcus Group moved closed this week to launching a purported initial public offering of the luxury retailer.

TPG Capital and Warburg Pincus LLC and Leonard Green & Partners, which took Neiman Marcus private in 2005 for $5.1 billion, have picked Credit Suisse, Bank of America and JPMorgan Chase & Co to lead the potential IPO, sources revealed.

Retail analysts said the move, which all parties involved declined to comment upon, may signify that the owners are leaning toward an IPO rather than selling the company.

As several news reports noted, private equity companies like the ones who own Neiman Marcus often try to sell to other companies or hedge funds while they are preparing for an IPO, a practice referred to as a “dual track.”

In fact, Warburg Pincus used the dual track just in May when it sold Bausch & Lomb Holdings Inc to Valeant Pharmaceuticals International for $8.7 billion just as the company was in the final stages of preparing for an IPO.

Adding to the speculation that the owners are seriously heading the IPO route is a Reuters report that Neiman Marcus Group turned down an offer from a “sovereign wealth fund from Qatar” which was interested in buying its Bergdorf Goodman store only.

The luxury retail group consists of 41 Neiman Marcus stores, Bergdorf Goodman as well as outlet chains Last Call and CUSP.

 

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Jeff Prine

Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com