Why Neiman Marcus Officially Went Up for Sale
After posting its sixth consecutive quarter of declining sales, storied retailer Neiman Marcus said Tuesday it would consider putting itself up for sale.
The luxury fashion retailer said it is “undertaking a process to explore and evaluate potential strategic alternatives, which may include the sale of the company or other assets, or other initiatives to optimize its capital structure.”
A sale of the company had been rumored for some time.
The Dallas-based retailer reported a 6.1 percent drop in second quarter revenues, totaling $1.4 billion. It reported $1.49 billion in total revenues for the comparable period a year earlier. In particular, the company also took a $153.8 million impairment charge to write down the value of its Neiman Marcus brand.
Neiman Marcus is the latest retailer to face struggles, thanks to shifts in consumer buying habits and unpredictable weather.
J.C. Penney Co. Inc., Macy’s Inc. and Sears have all announced plans to close. On a similar note, a number of sporting goods firms have filed for bankruptcy protection in recent weeks.
Neiman Marcus, meanwhile, did not provide a timetable for when it expected to decide on a sale or break up of the company.
Previous reports said that Canada-based Hudson’s Bay Co., the owner of Saks Fifth Avenue, could be a potential buyer.
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