Apollo Provides $1.15bn in Debt Financing for HBC’s $2.65bn Acquisition of Neiman Marcus

Jul 5, 2024 | News | 0 comments

Saks Fifth Avenue parent HBC will acquire department-store chain Neiman Marcus in a $2.65-billion deal, the companies said on Thursday, giving them stronger negotiating power with vendors and greater ability to control costs.
The deal comes with luxury retailers battling slowing demand as high interest rates and inflation force customers to crimp budgets, following a luxury retail boom after the pandemic.
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HBC said it will establish Saks Global, a combined entity of Saks Fifth Avenue, Neiman Marcus and other luxury retail and real estate assets.
Neiman filed for bankruptcy protection in 2020 after the pandemic forced the closing of Neiman and other stores across the United States, crushing the company’s revenues.
Neiman Marcus is known for selling designer dresses, shoes, handbags and other luxury products, catering to wealthy customers.
Reuters had reported on Wednesday that HBC agreed to buy Neiman Marcus.
Marc Metrick, CEO of the e-commerce Saks business, will run the combined company.
Source: Reuters

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