Saks owner said to acquire Neiman Marcus high-end retail business

In a further move to consolidate the luxury retail market, the parent company of Saks Fifth Avenue has agreed to buy Neiman Marcus for $2.65 billion, creating the ultimate high-end department store giant, two people familiar with the negotiations said on Wednesday.

The deal has been rumored since Neiman Marcus filed for bankruptcy protection during the pandemic, just four years after Saks acquired the brand’s license. Barnes The names are as follows The group went bankrupt. This is also the continuation of Luxury online retail failureincluding FarFetch and Matches.com. Saks is owned by HBC, a retail conglomerate that Acquired American chain stores 2013 – the year after HBC acquired Lord & Taylor.

The acquisition of Neiman Marcus will make the new group, Saks Global, the dominant player in the market with 75 stores (including two Bergdorf Goodman locations) and 100 discount stores. Its only real competitors in the U.S. will be Macy’s (which also owns Bloomingdale’s) and Nordstrom. A person familiar with the matter said the new group will be led by Marc Metrick, the current CEO of Saks and Saks.com.

As part of the deal, Amazon will take a minority stake in Saks Global, two people familiar with the matter said. HBC, which also owns Canadian department store chain Hudson’s Bay, will raise $2 billion from existing investors to finance the acquisition. Affiliates of investment firm Apollo Global Management will provide $1.5 billion in debt.

The Wall Street Journal earlier reported the deal.

This is a developing story. Please check back for updates.