Neiman Marcus, the Dallas-based luxury chain, is considering selling its prestigious Bergdorf Goodman stores in New York City, and possibly even the entire company, due to concerns over its weakening finances. Top executives are scheduled to meet with potential buyers for Bergdorf in New York City this week. Additionally, Neiman is contemplating an auction of the entire company, as there is a rift between the three buyout firms that acquired the retailer out of bankruptcy in 2020. Neiman’s majority owner, Pimco, is optimistic about a turnaround and wants to maintain control, while minority investors Davidson Kempner Capital Management and Sixth Street Partners are looking to exit and blame CEO Geoffroy van Raemdonck for the company’s declining sales and profits.
The potential sale of Bergdorf is a point of contention among the owners, as it is considered Neiman’s most valuable asset. There are concerns that selling Bergdorf would significantly diminish Neiman’s overall value. Luxury retailers such as Harrods, Selfridges, and Galeries Lafayette, as well as private equity firms and investors from the Persian Gulf and Asia, are potential bidders for Bergdorf. JPMorgan has been chosen to oversee the sale process.
Neiman’s financials were recently leaked, revealing a decline in profitability compared to the previous year when luxury sales were booming post-pandemic. The leak caught Neiman off guard and forced the CEO to publicly explain the company’s discounted pricing due to reduced consumer spending. Despite the challenges, van Raemdonck maintains that Neiman’s strategy is effective and that their best customers are compensating for the downturn.
This is not the first time Neiman has explored the possibility of selling Bergdorf. In 2021, following its emergence from bankruptcy, the retailer held discussions with Ashkenazy Acquisition Corp., the landlord of former luxury rival Barneys.
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