Parent company of Saks Fifth Avenue to buy rival Neiman Marcus

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The parent company of Saks Fifth Avenue has signed a deal to buy upscale rival Neiman Marcus Group, which owns Neiman Marcus and Bergdorf Goodman stores, for $2.65 billion, with online behemoth Amazon holding a minority stake

FILE - Shoppers walk into the Neiman Marcus retail department store at NorthPark shopping center in Dallas, March 30, 2023. The parent company of Saks Fifth Avenue has signed a deal to buy upscale rival Neiman Marcus for $2.65 billion. The buyout was announced Thursday, July 4, 2024, after months of rumors that the department store chains had been negotiating a deal. .

HBC has secured $1.15 billion in financing from investment funds and accounts managed by affiliates of Apollo, and a $2 billion fully committed revolving asset based loan facility from Bank of America, which is the lead underwriter, Citigroup, Morgan Stanley, RBC Capital Markets, and Wells Fargo. The pact was announced Thursday after months of rumors that the department store chains had been negotiating a deal.“For years, many in the industry have anticipated this transaction and the benefits it would drive for customers, partners and employees," said Richard Baker, HBC executive chairman and CEO in a statement.

Current Saks.com CEO Marc Metrick will become CEO of Saks Global, leading Saks Global’s retail and consumer businesses and driving the strategy to improve the luxury shopping experience.in September of that year. Like many of its peers, the privately held department store chain was forced to temporarily close its stores for several months.announced in late August 2020 it was closing all its stores after filing for bankruptcy earlier that month. It's operating online.

 

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