Neiman Marcus is considering the possible sale of his elegant Bergdorf Goodman stores in Latest York – and possibly even selling the whole business – as owners of the Dallas luxury chain turn into increasingly concerned about faltering funds, The Post has learned.
The highest executives of Neiman – whose chief executive Geoffroy van Raemdonck was insulted for taking thick packages because the retailer cut costs in a bumpy luxury goods market – are scheduled to satisfy potential buyers of Bergdorf in Latest York this week, in accordance with a source near the situation.
But Neiman can be investigating a possible company-wide auction, as a rift has emerged between the three buyout stores that brought the retailer out of bankruptcy through the deep pandemic in September 2020, in accordance with sources near the situation.
Neiman’s majority owner, Pacific Investment Management Co., higher often known as Pimco, is optimistic a couple of turnaround and needs to maintain control.
But minority investors Davidson Kempner Capital Management and Sixth Street Partners want out, blaming van Raemdonck for the corporate’s decline in sales and profits, sources say.
“There’s a civil war happening between the owners,” a source aware of the situation told The Post. “Neiman Marcus had a really bad 12 months and minority shareholders lost faith within the marketing strategy and management.”
The buyout firms tentatively agreed to research the sale of Bergdorf to facilitate a possible payout by Davidson Kempner and Sixth Street, the sources say.
Nevertheless, the owners also fear that the sale of Bergdorf, Neiman’s most respected property acquired in 1972, would painfully reduce Neiman’s overall value.
“The crown jewel will at all times discover a buyer, but I feel Neiman will lose most of its value if Bergdorf leaves,” said one insider. “Saks and Neiman are considered equals. Neiman’s distinguishing feature has at all times been the Bergdorf.”
London-based luxury goods suppliers Harrods and Selfridges are seen as potential bidders for Bergdorf, as is Parisian Galeries Lafayette, in accordance with sources near the situation.
Bergdorf could also attract bids from US private equity firms and investors with deep pockets within the Persian Gulf and Asia, the sources say.
In response to a source who spoke on condition of anonymity, JPMorgan was used to conduct the sale process.
“One in all the explanations they’re doing this process is to work out how much the corporate is price,” said one insider, hoping that Neiman could possibly be price as much as $2 billion if Bergdorf is included.
“We don’t comment on rumors or speculation,” Neiman Marcus said in an announcement.
Representatives from Pimco, Sixth Street and Davidson Kempner weren’t immediately in a position to comment.
Representatives from Harrods and Selfridges couldn’t be reached for comment immediately.
A spokeswoman for Galeries Lafayette said: “We disclaim any interest or affiliation with Bergdorf Goodman.”
The luxurious goods market has taken successful recently — hitting firms including French conglomerate LVMH, whose CEO Bernard Arnault subsequently lost his position because the world’s richest man to Elon Musk.
Earlier this month, Neiman’s financials were leaked, showing that profitability had fallen in comparison with last 12 months, when stores experienced a post-pandemic luxury boom.
Neiman’s Ebitda – which is earnings before taxes, interest, taxes, amortization – was $124 million for the quarter ended April 29 – up 25 percent from the previous 12 months.
Revenue fell 9% to $1 billion, Bloomberg reported.
“The financial results leak means something is improper,” in accordance with one source near the corporate. “There’s some dissatisfaction. There are signs of disagreement.”
The leak caught Neiman, insiders claimed, forcing the CEO to elucidate publicly that Neiman was forced to discount his expensive duds when customers pulled back on spending.
“We feel very strongly that our strategy is working,” van Raemdonck told Women’s Wear Each day, adding that the corporate’s top customers “compensate for the slowdown with more promotional and fewer engaged” shoppers who’re “more influenced by the macro environment.”
Earlier this 12 months, van Raemdonck insulted each employees and customers when he told Fortune magazine that Neiman Marcus would spend less time courting less affluent customers, as an alternative specializing in the corporate’s top 2%, who make up 40% of its business . .
In February, a slowdown in sales forced Neiman to put off 5% of its workforce, or about 500 employees, including completely erratic store greeters who handled various customer support functions reminiscent of returns, The Post reported exclusively.
This is not the primary time Neiman has explored a possible Bergdorf spin-off.
In 2021, amid a financial crisis after emerging from bankruptcy, the retailer was in talks with Ashkenazy Acquisition Corp., owner of Bergdorf’s former luxury rival Barneys, The Post reported.