Neiman Marcus Considers Sale After Failed IPO

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It is a tough time to be a department store, just ask Neiman Marcus.

Neiman MarcusThe company is reportedly considering selling itself to another company willing to merge with it, or take it over following its failed initial public offering (IPO). The luxury stores owner had planned to go public before January, when it changed its tune.

Part of the reason why Neiman Marcus chose to remain private has to do with the fact that not a lot of people go to malls and buy products the good old fashioned way. Foot traffic has been much lower for the company and sales have slumped spectacularly as a result.

Over the course of its second quarter, the company saw revenue decline 6.1% year-over-year. Neiman Marcus’ new merchandising and distribution systems have caused the company to take markdowns that have hurt its earnings figures recently.

Investment bank Lazard was hired by the retailer to help the company determine how to get out of its massive mountain of debt. The bank will help it with its balance sheet as the company owes around $4.9 billion.

The e-commerce business has taken a serious toll on companies such as Neiman Marcus, which are a dying breed. The response now may be to find a way to restructure its business into an online version of what it is currently doing.


Article printed from InvestorPlace Media, https://investorplace.com/2017/03/neiman-marcus-hudsons-bay/.

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