March 14, 2017
Ares Management LP and Canada Pension Plan Investment Board, owners of Neiman Marcus Group Ltd., are in discussions with rival retailer Hudson’s Bay Co. to sell. Upscale retailer Neiman Marcus has hired financial advisors to explore strategic alternatives that would help flagging sales. The alternatives range from outright sale of the company, to debt restructuring.
The retailer is dealing with approximately $5 billion in debt, as well as weak sales and poor earnings.
The Wall Street Journal said Hudson’s Bay wants a transaction that would provide control of the business without having to assume the company’s debt. Sources told the publication that Hudson’s Bay could buy Neiman’s assets with a structure that wouldn’t trigger a change in control. It would also leave the debt on Neiman’s books.
Hudson’s Bay owns Saks Fifth Avenue.
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