Neiman Marcus seeks recovery through IPO
U.S. luxury department store operator Neiman Marcus has filed plans for an IPO with US regulators and said it would use the $US100m raised to repay some of its $US4.7bn in debt. The BBC reports that the two investment firms will retain majority control of the 100-year old company after the listing.
Neiman Marcus owns 41 stores as well as Bergdorf Goodman on Manhattan’s Fifth Avenue and 42 Last Call outlets. In the filing, the company said that nearly 4 per cent of its customers have a median household income of more than $US200,000
Neiman Marcus is on track to recoup some of the loss in previous years with revenues rising 5 per cent to $US1.2bn in the three months to 2 May compared with the same period a year ago. Neiman Marcus’ profit has seen a huge swing of $US19.8m after posting a loss of $US8m ($AUD10.8m) for the quarter last year.
Founded in 1907, Neiman Marcus, originally Neiman-Marcus, is owned by the Neiman Marcus Group, headquartered in Dallas, Texas. The company also owns the Bergdorf Goodman department stores, and operates a direct marketing division, Neiman Marcus Direct, which operates catalogue and online operations under the Horchow, Neiman Marcus and Bergdorf Goodman names. Neiman Marcus is currently owned by CPP Investment Board and Ares Management, who paid $US6bn for the department stores.