Canadian department store chain Hudson’s Bay is rumoured to be interested in luxury chain Neiman Marcus, which previously stated it was examining strategic alternatives – including a sale. With this acquisition, Hudson’s Bay wants to continue its speedy expansion.
5 billion dollar debt
Recent rumours tied Hudson’s Bay to a possible Macy’s acquisition, but now it seems that Neiman Marcus is the newest target for the highly ambitious Canadian chain. Following recent expansions in Europe thanks to its Galeria Kaufhof purchase, it still has not quenched its thirst for additional expansion.
Neiman Marcus’ recent statements after its 6.8 % like-for-like turnover drop in the past quarter make it a likely acquisition target. The chain struggles to draw shoppers to stores and still has a five billion dollar (4.7 billion euro) debt, which allegedly is not part of a possible acquisition deal according to sources.
The luxury retailer’s forecast for the future looks bleak and was even labeled “unsustainable” by S&P Global Ratings. “Trends such as weak mall traffic, highly promotional retail apparel environment, and cautious consumer spending continue to weigh heavily”, credit analyst Helena Song said. Neiman Marcus was not available to comment and Hudson’s Bay’s spokesperson merely stated the company “selectively evaluate opportunities to accelerate the company’s strategic growth while maintaining or enhancing its credit profile.”
