Saks Fifth Avenue's parent company HBC is set to acquire Neiman Marcus Group in a staggering $2.65 billion acquisition.
As reported by CNBC, the huge deal will combine the retailers under Saks Global, which will be established to manage the luxury retail brands under one roof. When the transaction has closed, Saks Global promises to invest further into shopping experiences at all Saks Fifth Avenue, Saks Off Fifth, Neiman Marcus, and Bergdorf Goodman stores, which will continue to operate under their respective brand names.
"We're thrilled to take this step in bringing together these iconic luxury names, Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman," said HBC executive chairman and CEO, Richard Baker. "For years, many in the industry have anticipated this transaction and the benefits it would drive for customers, partners and employees. This is an exciting time in luxury retail, with technological advancements creating new opportunities to redefine the customer experience, and we look forward to unlocking significant value for our customers, brand partners and employees."
Saks CEO Marc Metrick will become CEO of Saks Global following the completion of the acquisition. "We have respect and admiration for NMG and the contributions its teams have made in the company’s evolution," Metrick added. "Together, with our ongoing focus on innovation, we are primed to drive growth for our brand partners and create career development opportunities for the incredible talent across Saks Global."
In addition to the retail brands, Saks Global will include all of HBC's U.S. real estate assets.
"This announcement is a testament to our team's unwavering commitment to building rewarding customer relationships, driven by our differentiated business model," said Neiman Marcus Group CEO Geoffroy Van Raemdonck. "We believe this is a proactive choice in an evolving retail landscape that will create value for our customers and brand partners. Saks Fifth Avenue shares our passion for connecting customers with the world’s best luxury fashion. With our complementary capabilities and a new long-term capital structure, the combined group will position our iconic Neiman Marcus and Bergdorf Goodman brands for continued success."
Neiman Marcus was hit hard by the COVID-19 pandemic, which forced the retailer to file for Chapter 11 bankruptcy in May 2020. Later that same year, five of its stores were closed. By 2022, however, Neiman Marcus began to bounce back with higher sales volumes in many of its stores.
