Neiman Marcus Files With SEC for IPO Minimum Raise Likely $100 Million
US luxury retailer Neiman Marcus is seeking to take itself back into public markets after a number of years in the hands of private owners.
Private equity firms TPG and Warburg Pincus had first acquired the chain in 2005 for $5.1 billion, and then sold it on, in 2013, for US$6 billion, to Ares Management and the Canada Pension Fund (or CPPIB, which is their full acronym if you are being pexact and which stands for the Canada Pension Plan Investment Board).
According to Neiman Marcus’s new filing with the SEC (i.e. the Securities and Exchange Commission, the US financial markets regulator), for registration fee purposes only Neiman Marcus are reporting they are seeking to raise just $100 million, with the proceeds to be used to pay down some of their heavy indebtedness, most of which is derived from their acquisition by the two private equity groups which then passed down the debt into their balance sheet immediately post-acquisition. The actual funds raised by the company could well be much larger, however, depending on demand for the offering when the road show commences in the weeks ahead, i.e. after the financial world comes back from the beaches of the Hamptons and places farther afield and their world comes back to life.
Neiman today runs 41 of its own-brand Neiman Marcus department stores, with two Bergdorf Goodman stores in New York City and, in addition, 42 Last Call outlet stores.
Neiman Marcus announced recently in June it had finally made a small profit of almost $20 million for the Spring quarter ended May 2, 2015, with a 5% jump in revenues, year over year to over $1.2 billion. In the prior year’s Spring quarter the company had lost $ 8 million.
While the IPO comes on the heels of popular demand for consumer-oriented share offerings, it remains to be seen if the valuations that come to the table at least match what the latest owners paid for the company just two years ago. It is also thought by some analysts that Canada’s Hudson Bay Company, controlled by Richard Baker, might have its own eyes on Neiman after acquiring Saks Fifth Avenue, also in 2013, to add to its earlier acquisition of Lord & Taylor, and doing very well with both as Saks digital sales have prospered since.
In one interesting items from the IPO documents, Neiman notes, in its outline of possible risk factors, that its sales are highly concentrated in just four states – it seems 50% of its fiscal 2014 sales came out of California, Florida, New York and Texas. That could be tempting in itself to other potential acquirers, perhaps seeking to balance their own regional sales charts.
Neiman Marcus has given customers a new way to
pay without plastic. It has developed an app that will
allow customers at Neiman Marcus, Bergdorf Goodman
and Last Call stores to pay for merchandise while leaving More…
Karen Katz has been CEO of the legendary Neiman Marcus
for 3 years, and in that brief time, she has been revolutionizing
the brand, according to Walter Loeb of Forbes magazine.
While luxury has been the emphasis More…
Luxury department store Neiman Marcus has introduced
a new and revolutionary way for people to see how they
look in clothing called a Memory Mirror. The company’s
CEO Karen Katz discussed it in an interview with More…
A Neiman Marcus store is opening its doors in Hudson Yards,
locatedin one of the fastest-growing neighborhoods of Manhattan.
The store is expected to open its doors in 2018, and is the first
Neiman Marcus store More…
Former Neiman Marcus employee Amir Peleg settled for an
undisclosed amount with the department store after filing a
lawsuit for wrongful dismissal. Peleg, aged 59, worked at the
fragrance department of the Beverly More…
Stephen Ross’ Related Companies is making headlines as it
has revealed plans to transform an Upper East Side Manhattan
rental apartment building into co-ops while it has also snagged
luxury department store chain More…
– Karen Katz, president and chief executive officer of Neiman Marcus
Group, says it’s “nice” to not be a public company after Ares
Management LLC and the Canada Pension plan Investment
Board acquired More…
– The passing was recently announced of Lawrence Eliot Marcus,
the fourth son of Herbert Marcus, co-founder of the Neiman Marcus
department store chain. – Herbert Marcus and sons Stanley Marcus,
Lawrence Marcus More…
Heiress Patricia Walker, resident of Dallas’s tony Highland Park
neighbourhood, commenced suit in September More…
Texas Pacific Group (TPG) Capital and Warburg Pincus may sell
retailer Neiman Marcus or launch a public offering, according to
unnamed sources quoted in the Houston More…