Published: Wed, March 15, 2017
Markets | By Erika Turner

Neiman Marcus: Exploring options for company including sale

Neiman Marcus: Exploring options for company including sale

The sign outside the Neiman Marcus Last Call store is seen in Golden, Colorado January 23, 2014.

Neiman Marcus Group said in a statement that it is "undertaking a process to explore and evaluate potential strategic alternatives, which include the sale of the company or other assets".

Non-cash impairment charges of $153.8 million, which are described as "Other Items", contributed to a net loss of $117.1 million compared to net earnings of $7.9 million for the second quarter of fiscal year 2016.

The newspaper reports that Neiman's owners - the Canada Pension Plan Investment Board and private-equity firm Ares Management LP - are holding sale discussions with the iconic Canadian retailer.

The announcement Tuesday came as the retailer, which also operates Bergdorf Goodman, reported a loss in its second fiscal quarter that ended January 28 and its sixth consecutive quarterly drop for a key revenue measure.

The Dallas-based retailer reported a 6.1 percent drop in second quarter revenues, totaling $1.4 billion.

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Earlier this year another luxury retailer, Hudson Bay, the owner of Saks and Lord & Taylor in the United States and Galeria Kaufhof and Galeria Inno in Europe, made a bid for another old-line US retailer, Macy's, a source told CNNMoney at that time.

United States department store Neiman Marcus has revealed today that it is exploring strategic options which may include a sale of the business. Hudson's Bay Company, the Canadian group which owns Saks Fifth Avenue, is being tipped as a likely purchaser.

Neiman Marcus is one of a number of department stores that have run into financial problems in recent years as more and more consumers embrace online shopping.

Last month, there was a media report that Hudson's Bay was eyeing to take over another American retail chain, Macy's.

J.C. Penney Co. Inc., Macy's Inc. and Sears have all announced plans to close stores. But investors were hesitant about a deal that would anchor them in shopping malls which are seeing declining foot traffic.

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