Neiman Marcus Looking for Investor or Buyer
Struggling under a combination of $5 billion in debt and flagging sales, embattled luxury retailer Neiman Marcus is on the hunt for a buyer or investor. Karen Katz, Neiman Marcus’ CEO, recently traveled to China to meet with potential buyers, including executives of Anbang Insurance Group, which has invested in U.S. companies. But Anbang passed on an offer to buy all of Neiman, according to the source.
Total Retail's Take: Like its peers, Neiman Marcus, which was acquired by private equity firm Ares Management LP and Canada Pension Plan Investment Board in 2013, has been struggling in a weak retail environment. It's had three consecutive quarters of sales declines, and the future doesn't look brighter. With a concentration of stores in Texas, Neiman Marcus has been especially hard hit as a steep decline in oil prices has sapped the buying power of its wealthy customers. Furthermore, last August Neiman announced plans to file an initial public offering, but it has been delayed. Looking for an outside buyer may be the right move for Neiman. The company's troubles may not attract a private equity firm or U.S. retailer.