Iconic store Bergdorf Goodman is reportedly seeking sale options, just three years after being rescued from bankruptcy.
Upscale retailer Neiman Marcus, owner of the department store which has two outlets on New York’s Fifth Avenue, is reportedly considering selling the upscale stores — and indeed the entire business.
The Dallas-based company is said to be increasingly alarmed by weakening finances, according to the New York Post.
The outlet said senior Neiman Marcus executives are expected to meet with potential buyers for the high-end Bergdorf Goodman in the Big Apple this week.
Neiman is also reportedly considering a possible company-wide auction as a rift has emerged between the three stores that saved the retailer from bankruptcy at the height of the Covid-19 pandemic in September 2020.
Neiman Marcus, owner of the department store which has two outlets in New York, is reportedly considering selling the fancy stores
The Dallas-based company is said to be increasingly alarmed by weakening finances
Some investors would like to leave, while others believe the company may have a better future.
“There is a civil war between the ownership group,” a source told the outlet. “Neiman Marcus had a very bad year and minority shareholders lost faith in the business plan and in management.”
The owners are concerned, however, that the sale of Bergdorf Goodman, Neiman Marcus’ most prized property, will diminish the overall value of the business.
The New York store, which was founded in 1899 and took up permanent residence on glamorous Fifth Avenue in 1928, sells designer clothes from brands including Prada, Jimmy Choo, Gucci, Lanvin, Dolce & Gabbana.
“The crown jewel will always find a buyer, but I think Neiman loses most of its value if Bergdorf leaves,” 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 New York stores.
“We do not comment on rumors or speculation,” Neiman Marcus said in a statement.
It comes after Neiman Marcus CEO Geoffroy van Raemdonck was accused of being ‘snobby’ by his employees after saying the luxury chain would focus on the company’s wealthiest customers as they generate the majority of sales.
“Many customers shop at Neiman Marcus 25 times a year and spend $27,000,” he said. Fortune in February. “I see a lot more risk in having a one-time transaction where I don’t know if you’ll ever come back.”
In 2020, he also came under fire for flaunting his Dallas mansion in an 11-page magazine circulated amid the bankruptcy saga that saw staff furloughs and pay cuts.
Although van Raemdonck promised to forgo his entire salary, it was later discovered that the CEO and other top executives could receive up to $9.9 million in chapter bankruptcy protection. 11.
Neiman Marcus CEO Geoffroy van Raemdonck faced backlash earlier this year after saying the luxury chain would focus on the company’s wealthiest customers.
Owners fear the sale of Bergdorf Goodman, Neiman Marcus’ most prized property, will diminish the company’s overall value
The New York store sells designer clothes from brands including Prada, Jimmy Choo, Gucci, Lanvin, Dolce & Gabbana
Neiman Marcus is among the growing list of companies battling the so-called retail apocalypse gripping the United States.
As of 2021, nearly 5,000 storefronts from major brands such as Target, Best Buy, Sears, Foot Locker and CVS have already closed, with thousands more closings across the country expected 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 is expected to accelerate due to the combination of slowing consumer spending, a reduction in the availability of credit and an increase in e-commerce penetration.
One of the biggest stores to file for bankruptcy this year is Bed Bath & Beyond – which closed 50,000 stores across the country.
San Francisco has been particularly hard hit by the closures – as more and more retailers abandon the city’s downtown district amid rising crime.
