Hudson’s Bay is reportedly in with Neiman Marcus to acquire the company after it reported a 6.1% decline in revenue in the second quarter fiscal 2017.
According to an article on The Wall Street Journal, Hudson’s Bay, parent company of Saks Fifth Avenue, is in talks with Neiman Marcus to acquire the company. The reports come just after the company reported a 6.1% decline in revenue for Q2.
The deal is said to exclude Neiman Marcus’ debt of $4.9 billion. A debt that began declining after the company’s $6 billion acquisition by the Canada Pension Plan Investment Board 4 years ago.
Neiman Marcus reported a 6.1% decline in revenue to $1.4 billion for Q2. That’s compared to $1.49 billion last year. Earnings were $126.8 million compared to $183 million last year. Sales also declined by 6.8%.
In its report for Q2, Neiman Marcus said that the company is “undertaking a process to explore and evaluate potential strategic alternatives,” which may include selling the company and its assets.
Neiman Marcus was not available for comment, however, a spokesperson for Hudson’s Bay said,
“as a matter of company policy, we do not comment on rumors or market speculation. Generally speaking, as we previously stated, we selectively evaluate opportunities to accelerate the company’s strategic growth while maintaining or enhancing its credit profile.”
The deal wouldn’t be much of a surprise, though. Neiman Marcus was reportedly trying to sell the company last year in June while Hudson’s Bay is in the business of buying, according to an article on Fashionista. Hudson’s Bay’s most notable purchase has been of Saks, Inc. about 3 years ago. That put Saks Faith Avenue in its portfolio which already included brands like Lord & Taylor.
There were also rumors last month that’s Hudson’s Bay made takeover bids for Macy’s. Hudson’s Bay, however, said it does not comment on rumors and Macy’s declined to comment.
Both Hudson’s Bay and Neiman Marcus have note yet set a date for the sale of the company or its assets, according to an article on WWD.
Regardless, the fact that Neiman Marcus is even considering selling the company shows that sales at department stores are still declining as customers shop more online rather than in stores.
So, what do you think? Is Hudson’s Bay in talks to acquire Neiman Marcus? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.
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