May 8, 2024 - Business

Neiman Marcus and Saks are closer to a deal

Richard Collings

A pedestrian walks by a Neiman Marcus sign. — Photo: Christopher Dilts/Bloomberg via Getty Images

Luxury retailer Saks and its owner, HBC, are closer to inking a deal to acquire rival Neiman Marcus for $3 billion, Axios has confirmed.

Why it matters: After years of rumors and speculation, the two main luxury retailers are on the verge of reshaping the high-end shopping landscape.

Catch up quick: WWD reported on the progress in deal negotiations earlier Wednesday.

Axios previously reported the two parties were in negotiations, citing a Moody's report.
Talks were called off in December after Neiman Marcus rejected an offer from HBC and Saks that consisted of $2.1 billion in cash and up to $1 billion in subordinated debt (though one source put the figure at $500 million).
Neiman Marcus' owners wanted more cash, and negotiations were expected to pick back up after the holiday season.

The intrigue: WWD reported that European online retailer Zalando, along with Indian retail and real estate group Reliance, would offer funding for a deal.

What we're watching: If struck, any deal would need the seal of approval from the Federal Trade Commission

With the FTC challenging the combination of the two leading U.S. luxury accessories makers Tapestry and Capri, all deals are under more scrutiny.

HBC and Neiman Marcus' largest shareholder, Pacific Investment Management Co., declined to comment, while Neiman Marcus did not immediately respond.

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Neiman Marcus and Saks are closer to a deal

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