Legendary New York store Bergdorf Goodman is reportedly exploring options to sell just three years after it was bailed out of bankruptcy.
High-end retailer Neiman Marcus is reportedly considering selling the swanky 5th Avenue store — and potentially the entire business — after reportedly growing concerned about its flagging financial situation.
Top executives will meet potential buyers in the Big Apple this week.
Dallas-based Neiman is also reportedly exploring a possible auction of the entire company due to a conflict that arose after saving the retailer from bankruptcy at the height of the Covid-19 pandemic in September 2020.
Neiman Marcus, who owns the New York City department store, is reportedly considering a sale
The Dallas-based company is reportedly increasingly concerned about its weakening financial position
Some investors reportedly want out, while others believe the company could have a brighter future.
“There’s a civil war going on between the ownership group,” a source told the New York Post. “Neiman Marcus has had a very bad year and minority shareholders have lost confidence in the business plan and management.”
However, owners fear that the sale of Bergdorf Goodman, Neiman Marcus’ most valuable property, could reduce the company’s overall value.
The New York store, which was founded in 1899 and permanently settled on glamorous Fifth Avenue in 1928, sells designer clothing from brands such as Prada, Jimmy Choo, Gucci, Lanvin, Dolce & Gabbana.
“The crown jewel will always find a buyer, but I think Neiman will lose most of its value if Bergdorf goes away,” an insider told the outlet. “Saks and Neiman are considered equals.” “The differentiator for Neiman has always been Bergdorf.”
London-based luxury retailers Harrods and Selfridges are reportedly considered potential bidders for the New York stores.
“We do not comment on rumors or speculation,” Neiman Marcus said in a statement.
This comes after Geoffroy van Raemdonck, CEO of Neiman Marcus, was accused of “snobbery” by his staff after he said the luxury chain will focus on the company’s wealthiest customers because they generate the bulk of its sales.
“A lot of customers shop at Neiman Marcus 25 times a year and spend $27,000,” he told Fortune in February. “I see a much greater risk in a one off transaction where I don’t know if you’ll ever come back.”
In 2020, he was also criticized for flaunting his Dallas mansion in an 11-page magazine page amid the bankruptcy saga that came with staff furloughs and pay cuts.
Although van Raemdonck vowed to forego his entire salary, it later emerged that the CEO and other top executives could receive up to $9.9 million under Chapter 11 bankruptcy protection.
Geoffroy van Raemdonck, CEO of Neiman Marcus, faced backlash earlier this year after saying the luxury chain would focus on the company’s wealthiest customers
Owners fear that the sale of Bergdorf Goodman, Neiman Marcus’ most valuable property, could reduce the company’s overall value
The New York store sells designer clothing from brands such as Prada, Jimmy Choo, Gucci, Lanvin, Dolce & Gabbana
Neiman Marcus is among the growing list of companies battling the so-called retail apocalypse sweeping the US.
As of 2021, nearly 5,000 stores from major brands including Target, Best Buy, Sears, Foot Locker and CVS have already closed their doors, and thousands more are expected to close across the country in the coming years.
Investment bank UBS warned earlier this year that 50,000 stores would close by 2027, warning that “the pace of store closures will accelerate due to the combination of a slowdown in consumer spending, a reduction in credit availability and a surge in branch penetration.” Ecommerce.’
One of the biggest high-profile stores to file for bankruptcy this year is Bed Bath & Beyond – which has closed 50,000 stores nationwide.
San Francisco has been hit particularly hard by closures as more retailers move out of the city’s downtown area due to rising crime.