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Is Neiman Marcus Selling Bergdorf Goodman?

Neiman Marcus bought Bergdorf Goodman in 1972.

Original Store Bergdorf Goodman Wikipedia

Neiman Marcus might just be interested in unloading the iconic luxury store Bergdorf Goodman. The move comes after Neiman Marcus recently made its return from Bankruptcy. According to the New York Post, the interested Bergdorf Goodman buyer is none other than Ashkenazy Acquisition Corp. Meanwhile, Neiman Marcus has pledged to stop selling fur.

Such a sale would make sense, considering that brick and mortar stores are dying out due to competition from the internet.

Bergdorf Goodman Inc. is a luxury department store located on Fifth Avenue in Midtown Manhattan. Bergdorf Goodman was established in 1899 by Herman Bergdorf. Years later the store was owned and managed by American Jewish businessman Edwin Goodman who was succeeded by his son, Andrew Goodman. The Bergdorf Goodman store has been in its current location, a Beaux-Arts style Building on the site of the Cornelius Vanderbilt II House, at Fifth Avenue and 58th Street in 1928. Neiman Marcus acquired the store in 1972.

The sale of the iconic store is said to be part of the overall restructuring plan for Neiman Marcus. At the end of March Neiman Marcus announced that the company had completed refinancing of a substantial portion of its exit facilities with an aggregate principal amount of $1.1 billion of new 7.125% senior secured notes due 2026 issued by NMG Holding Company, Inc., a Delaware corporation, and The Neiman Marcus Group LLC, a Delaware limited liability company. The transaction, initially sized at $1 billion, was increased to $1.1 billion in response to demand from institutional investors.

โ€œThis refinancing validates the momentum we are seeing as we continue to execute on our strategic transformation plan amidst improved market conditions,โ€ said Brandy Richardson, Executive Vice President and Chief Financial Officer, Neiman Marcus Group, at the time. โ€œConfidence from our investors is reflected in final pricing terms and the size of the offering. We have additional financial flexibility as we invest in our supply chain, elevate our digital excellence and deliver unparalleled luxury experiences.โ€

But Neiman Marcus is so far denying that they have any plans to sell Bergdorf Goodman.

โ€œWe have no intention nor are we looking to sell Bergdorf Goodman at this time,โ€ a Neiman spokesperson told the NY Post. โ€œWe are strategically investing in our business and our brands with the intention of growing and strengthening the company.โ€

Meanwhile, Neiman Marcus announced that it will be pulling all fur clothing items from the companyโ€™s websites and will shutter their 22 fur salons by early 2023. This will include Bergdorf Goodman, provided that the store remains a Neiman Marcus asset.

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