A Hudson’s Bay takeover of Macy’s may be out, but word is that Neiman Marcus could be the next retail chain the Canadian conglomerate scoops up. The two companies are in talks and negotiations are already further along than the potential deal with Macy’s.
Although the floundering Neiman Marcus put itself up for sale earlier this year, the rumors started after things seemed to take an even deeper nosedive recently. Today the company reported another 6.1% revenue dip for its last quarter and last month its credit rating was downgraded to a triple C-plus by Standard & Poor’s. Add to that its imminent $5 billion debt and its plan to abandon an IPO, and the company needs to sell itself fast.
For its part, Neiman Marcus said that it 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.”
Still, Hudson’s Bay is keeping quiet about the deal and leaving room for speculation. It issued a statement about the matter, saying: “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 currently operates 48 stores nationwide, along with two Bergdorf Goodman stores in New York City. A Hudson’s Bay buyout would put Neiman Marcus under the same umbrella as Saks Fifth Avenue and Lord & Taylor.