Iconic New York City store Bergdorf Goodman is reportedly looking at options to sell, just three years after it was saved from bankruptcy.
High-end retailer Neiman Marcus is allegedly considering selling the swanky 5th Avenue store – and possibly even the whole company, after it reportedly became increasingly alarmed over weakening finances.
Top executives are set to meet prospective buyers in the Big Apple this week.
Dallas-based Neiman is also reportedly examining a possible auction of the entire company as a rift has emerged following the rescue of the retailer from bankruptcy at the height of the Covid-19 pandemic in September 2020.
Neiman Marcus, which owns the department store in New York City, is allegedly considering selling
The Dallas-based company is reportedly becoming increasingly alarmed over weakening finances
Some investors allegedly want out, while others believe there could be a brighter future for the company.
‘There is a civil war going on between the ownership group,’ a source told the New York Post. ‘Neiman Marcus had a very bad year, and the minority shareholders have lost faith with the business plan and with management.’
The owners are however concerned that selling Bergdorf Goodman, Neiman Marcus’s most prized property, could diminish the overall value of the company.
The New York City store, which was founded in 1899 and permanently set up shop on glamorous Fifth Avenue in 1928, sells designer clothes from brands such as 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 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 prospective bidders for the 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 ‘snobbish’ by his employees after saying the luxury chain will focus on the company’s wealthiest clients because they bring in a majority of sales.
‘Many customers shop at Neiman Marcus 25 times a year and spend $27,000,’ he told Fortune in February. ‘I see much more risk in having a one-time transaction where I don’t know if you will ever come back.’
In 2020, he was also blasted for flaunting his Dallas mansion in an 11-page magazine spread amid the bankruptcy saga that saw staff furloughs and pay cuts.
Despite van Raemdonck promising to waive his entire salary, it was later discovered that the CEO and other top execs could receive up to $9.9million on the 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 selling Bergdorf Goodman, Neiman Marcus’s most prized property, could diminish the overall value of the company
The New York City store sells designer clothes from brands such as Prada, Jimmy Choo, Gucci, Lanvin, Dolce & Gabbana
Neiman Marcus is among the growing list of companies fighting the so-called retail apocalypse gripping the US.
Since 2021, nearly 5,000 storefronts from major brands including Target, Best Buy, Sears, Foot Locker, and CVS have already shut their doors, with thousands more closures across the country expected in the coming years.
Investment bank UBS warned earlier this year that 50,000 stores would close by 2027, cautioning ‘the pace of store closures is set to accelerate due to the combination of a slowdown in consumer spending, a reduction in the availability of credit, and a rise in the penetration of e-commerce.’
One of the biggest name stores to file for bankruptcy this year is Bed Bath & Beyond – which has closed 50,000 stores across the country.
San Francisco has been particularly badly hit by closures – as increasing numbers of retailers abandon the city’s downtown district amid rising crime.
