Last week brought two big pieces of Neiman Marcus news. The day started with the announcement that the company had successfully extended the maturities on some $4.6 billion in debt. Then, a few hours later, Neiman's reported quarterly results, which were concerning. After six consecutive quarters of growth, comparable sales were down 1.5%, and the luxury retailer posted a … Continue reading Neiman Marcus kicks the can down the road. So now what?
Recently a roughly $8.4 billion offer from the Nordstrom family to take the namesake retailer private was rejected as inadequate. The deal now seems at risk as the special committee in charge of evaluating a potential transaction indicated that the price needed to be "substantially" and "promptly" improved upon or they would terminate further discussions. While … Continue reading Going Private Could Be The Best Thing To Ever Happen To Nordstrom; With One Big Caveat
Late last week the Neiman Marcus Group named former Ralph Lauren executive Geoffroy van Raemdonck as their new CEO, replacing company veteran Karen Katz (full disclosure: once my boss). While not terribly surprising given the company's struggles under a mountain of debt, extremely rocky "NMG One" systems implementation and largely stagnant growth, the move does come at a critical … Continue reading A tough agenda faces Neiman Marcus’ new CEO
Tuesday morning the Neiman Marcus Group reported another quarter of disappointing financial results and announced that it was going to "explore strategic alternatives." To be sure, some of Neiman's problems are idiosyncratic, largely owing to a botched systems implementation and a now crushing debt load taken on in a 2013 private equity buyout. Yet the brand's continuing … Continue reading Should Hudson Bay Buy Neiman Marcus? The Case For And Against.
Yesterday Barneys New York averted yet another trip to bankruptcy court through a major restructuring deal that converted most of their debt to equity (http://bloom.bg/IUyHir). Unless you work at Istithmar--the PE firm that paid more than $940MM for Barneys in 2007 (oops!)--or owned Barneys debt, this is a big deal (pun intended). Barneys no longer … Continue reading Out of Barneys’ rubble: What’s next for luxury fashion’s biggest boutique