Wall Street Journal is reporting that Hudson’s Bay Co has turned its sights from Macy’s to luxury retailer Neiman Marcus
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Neiman Marcus — which posted a 6.1 percent decrease in comparable revenue to $1.40 billion this quarter — may already have a buyer in Hudson’s Bay Company. According to a CNBC report, citing Dow Jones, the Canadian business group is in talks to purchase the struggling retailer. While a representative for Neiman Marcus was not immediately available to comment, a company spokesperson for Hudson’s Bay provided the following statement:
AS A MATTER OF COMPANY POLICY, WE DO NOT COMMENT ON RUMORS OR MARKET SPECULATION. 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.
This deal is said to exclude Neiman Marcus’s debt load of $4.9 billion, which first began compounding following its $6 billion acquisition by the Canada Pension Plan Investment Board and Ares Management in 2013.
The transaction wouldn’t be all that surprising: Just as Neiman Marcus has looked to sell the company in the past (and as recently as this past June), Hudson’s Bay is in the business of buying. Its most high-profile stateside purchase to date, perhaps, has been of Saks, Inc., which was completed in November 2013. This added Saks Fifth Avenue to its portfolio of retailers that also includes Lord & Taylor and, as of January 2016, Gilt.
According to WWD, neither Hudson’s Bay nor Neiman Marcus has set a timetable for the sale of the company or any of its assets.
Neiman Marcus, the luxury U.S. retailer that was purchased equally by Canada Pension Plan Investment Board and Ares Management for US$6 billion in 2013, may be on the block and it appears that Canada’s Hudson Bay Co., is a potential suitor.
The Wall Street Journal reported on Tuesday that HBC is in talks to buy the firm, but that it was not interested in taking on Neiman’s debt.