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.
For a long time, the conventional wisdom has been that the luxury market was largely impervious to the ups and down of the economy. Yet recent results suggest otherwise and even with an improving macro-economic picture and booming stock market, most U.S.-based luxury retail brands continue to struggle. A little over a week ago, reports … Continue reading Luxury retail hits the wall
What if your company could never open another store? I'm not talking about relocations. I mean a truly new unit that adds top-line growth for your brand. That's pretty much the case in the US department store sector. Macy's, JC Penney, Dillard's and Sears (obviously) are closing far more full-line stores than they will open. … Continue reading No new stores ever!
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