Iconic NYC luxury retailer could be sold amid weakening finances

New York City’s iconic Bergdorf Goodman store is reportedly looking at sale options just three years after it was bailed out of bankruptcy.

High-end retailer Neiman Marcus is reportedly considering selling the posh 5th Avenue store — and possibly even the entire company, after it reportedly became increasingly alarmed about weakening finances.

Top executives will meet with potential buyers in the Big Apple this week.

Dallas-based Neiman is also reportedly looking into a possible auction of the entire company as a rift has erupted following the retailer’s rescue from bankruptcy at the height of the Covid-19 pandemic in September 2020.

The Dallas-based company is reportedly increasingly concerned about its weakening finances

Some investors would like to get out, while others believe there could be a brighter future for the company.

“There is a civil war going on between the property group,” a source tells the New York Post. “Neiman Marcus has had a very bad year and minority shareholders have lost confidence in the business plan and management.”

However, the owners are concerned that the sale of Bergdorf Goodman, Neiman Marcus’ most prized property, could reduce the company’s overall value.

Founded in 1899 and permanently located on glamorous Fifth Avenue in 1928, the New York City store sells designer clothing from brands such as Prada, Jimmy Choo, Gucci, Lanvin, Dolce & Gabbana.

“The crown jewel will always find a buyer, but I think Neiman will lose most of its value if Bergdorf goes away,” 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 seen as potential bidders for the New York stores.

“We do not comment on rumors or speculation,” Neiman Marcus said in a statement.

It comes after Geoffroy van Raemdonck, CEO of Neiman Marcus, was accused of “snobbishness” by his employees after saying the luxury chain will focus on the company’s wealthiest clients, as they bring in the majority of its revenue.

“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 a one-time transaction that I don’t know if you’ll ever come back.”

In 2020, he was also criticized for showing off his Dallas mansion in an 11-page magazine distributed amid the bankruptcy saga that saw employee furloughs and pay cuts.

Despite Van Raemdonck promising to waive his entire salary, it was later discovered that the CEO and other top executives could receive up to $9.9 million on Chapter 11 bankruptcy protection.

Neiman Marcus CEO Geoffroy van Raemdonck faced backlash earlier this year after saying the luxury chain will focus on the company’s wealthiest clients

Owners are concerned that the sale of Bergdorf Goodman, Neiman Marcus’ most prized property, could reduce the company’s overall value

The New York City store sells designer clothes from brands like Prada, Jimmy Choo, Gucci, Lanvin, Dolce & Gabbana

Neiman Marcus is one of the growing list of companies battling the so-called retail apocalypse gripping the US.

As of 2021, nearly 5,000 storefronts from major brands, including Target, Best Buy, Sears, Foot Locker, and CVS, have already closed, with thousands more closures expected across the country 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 will accelerate due to the combination of a slowdown in consumer spending, a reduction in credit availability and a rise in e-commerce penetration.” -commerce.’

One of the biggest name stores to file for bankruptcy this year is Bed Bath & Beyond, which has closed 50,000 stores nationwide.

San Francisco has been particularly hard hit by closures – as more and more retailers leave the city center amid rising crime.