Neiman Marcus Group was an American

holding company A holding company is a company whose primary business is holding a controlling interest in the Security (finance), securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own Share ...

department store A department store is a retail establishment offering a wide range of consumer goods in different areas of the store under one roof, each area ("department") specializing in a product category. In modern major cities, the department store mad ...

s. It was established after holding company Carter Hawley Hale spun-off several of the department store chains it owned in 1987. At the time of its two-fold acquisition by

Toronto Toronto ( , locally pronounced or ) is the List of the largest municipalities in Canada by population, most populous city in Canada. It is the capital city of the Provinces and territories of Canada, Canadian province of Ontario. With a p ...

-based

Hudson's Bay Company The Hudson's Bay Company (HBC), originally the Governor and Company of Adventurers of England Trading Into Hudson’s Bay, is a Canadian holding company of department stores, and the oldest corporation in North America. It was the owner of the ...

and spin-off into

Saks Global Saks Global Enterprises LLC is an American holding company of department store A department store is a retail establishment offering a wide range of consumer goods in different areas of the store under one roof, each area ("department") sp ...

in 2024, it owned the full-line luxury stores

Bergdorf Goodman Bergdorf Goodman Inc. is an American luxury department store based in New York City, founded in 1899 by Herman Bergdorf. , it operates a women's store and a men's store across the street from each other on Fifth Avenue in Midtown Manhattan. ...

(based in

New York City New York, often called New York City (NYC), is the most populous city in the United States, located at the southern tip of New York State on one of the world's largest natural harbors. The city comprises five boroughs, each coextensive w ...

) and

Neiman Marcus Neiman Marcus is an American department store chain founded in 1907 in Dallas, Texas by Herbert Marcus, his sister Carrie Marcus Neiman, and her husband Abraham Lincoln Neiman. It has been owned by Saks Global, a Corporate spin-off, spin-o ...

(based in

Dallas Dallas () is a city in the U.S. state of Texas and the most populous city in the Dallas–Fort Worth metroplex, the List of Texas metropolitan areas, most populous metropolitan area in Texas and the Metropolitan statistical area, fourth-most ...

);

off-price Off-price is a trading format based on Discounts and allowances, discount pricing. Off-price retailers are independent of manufacturers and buy large volumes of branded goods directly from them. The off-price retail model relies on the purchase of ...

store Neiman Marcus Last Call; and home furnishings website Horchow.

Operations in the 20th century

Neiman Marcus Group was formed by a

spin-off Spin-off, Spin Off, Spin-Off, or Spinoff may refer to: Entertainment and media *Spinoff (media), a media work derived from an existing work *''The Spinoff'', a New Zealand current affairs magazine * ''Spin Off'' (Canadian game show), a 2013 Canad ...

by its parent company Carter Hawley Hale in June 1987. General Cinema (later Harcourt General) originally held 60-percent stake in the new company, and later reduced to 10-percent stake in 1999. The new company held ownership of

-based

(acquired by Carter Hawley Hale in 1969),

-based

(acquired by CHH in 1972), and Contempo Casuals (acquired by CHH in 1979).

Operations in the 21st century

On May 2, 2005, Neiman Marcus Group was the subject of a

leveraged buyout A leveraged buyout (LBO) is the acquisition of a company using a significant proportion of borrowed money (Leverage (finance), leverage) to fund the acquisition with the remainder of the purchase price funded with private equity. The assets of t ...

(LBO), selling itself to two

private equity Private equity (PE) is stock in a private company that does not offer stock to the general public; instead it is offered to specialized investment funds and limited partnerships that take an active role in the management and structuring of the co ...

firms,

Texas Pacific Group TPG Inc., previously known as Texas Pacific Group and TPG Capital, is an American private equity firm based in Fort Worth, Texas. TPG manages investment funds in growth capital, venture capital, public equity, and debt investments. The firm in ...

and

Warburg Pincus Warburg Pincus LLC is a global private equity firm, headquartered in New York City, with offices in the United States, Europe, Brazil, China, Southeast Asia and India. Warburg has been a private equity investor since 1966. As of April 2024 the f ...

.Neiman Marcus in $5.1B buyout
CNN Money, May 2, 2005 In August 2013, ''

Women's Wear Daily ''Women's Wear Daily'' (also known as ''WWD'') is a fashion-industry trade journal often referred to as the "Bible of fashion". Horyn, Cathy"Breaking Fashion News With a Provocative Edge" ''The New York Times''. (August 20, 1999). It provides i ...

'' reported Neiman Marcus Group was preparing for an

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investm ...

of its stock. In October 2013, the Neiman Marcus Group was sold for $6 billion to

Ares Management Ares Management Corporation is a global alternative investment manager operating in the credit, private equity and real estate markets. The company was founded in 1997 with additional offices across North America, Europe, and Asia. As of Sep ...

and the

Canada Pension Plan Investment Board The Canada Pension Plan Investment Board (CPPIB; ), operating as CPP Investments (), is a Canadian Crown corporation established by way of the 1997 ''Canada Pension Plan Investment Board Act'' to oversee and invest the funds contributed to and h ...

. In August 2015, the company again announced it was preparing for an initial public offering. In late 2015 Neiman Marcus became a stand-alone company. In 2018 Geoffroy van Raemdonck replaced Karen Katz as CEO. In April 2019, Neiman Marcus acquired a minority stake in Fashionphile, an online resale platform for handbags, jewelry and accessories. In July 2021,

mytheresa Mytheresa.com is a listed e-commerce company in the luxury fashion sector based in Munich, Germany. Mytheresa sells ready-to-wear, shoes, bags, and accessories for womenswear, menswear and kidswear as well as lifestyle products and jewelry global ...

was spun off and filed for IPO on the NYSE, valuing it at $2.2 billion which increased to $3 billion during the first day of trading. In June 2022 Neiman Marcus Group reported their highest sales volume in almost half of their stores, and sales of their 20 best-selling brands grew by 70% above pre-COVID levels in 2019. The company has also been attracting younger customers, with the average age falling by seven years from pre-pandemic levels, from the mid-40s to the high-30s.

2020 bankruptcy

Neiman Marcus Group, Ltd. LLC and 23 affiliated debtors filed Chapter 11 bankruptcy in the

United States District Court for the Southern District of Texas The United States District Court for the Southern District of Texas (in case citations, S.D. Tex.) is the federal district court with jurisdiction over the southeastern part of Texas. The court's headquarters is in Houston, Houston, Texas, and ...

in May 2020. The debtors requested joint administration of the cases under Case No. 20-32519. According to the company's CEO, Geoffroy van Raemdonck, the filing was a direct result of the COVID-19 pandemic in the United States. The company's website, mytheresa.com, was not part of the bankruptcy. At the end of September 2020, Neiman Marcus exited Chapter 11 bankruptcy, and as of 2022 is owned by a consortium of investment firms (

Davidson Kempner Capital Management Davidson Kempner Capital Management LP (often known by the short form Davidson Kempner) is a global institutional alternative investment management firm with over $36 billion in assets under management. Davidson Kempner is headquartered in New Yor ...

, Sixth Street Partners and Pacific Investment Management).

Acquisition by Hudson's Bay Company

-based

announced its pending acquisition of the Neiman Marcus Group (NMG) on July 4, 2024. The purchase is valued at $2.65 billion, with financing facilitated by

Amazon Amazon most often refers to: * Amazon River, in South America * Amazon rainforest, a rainforest covering most of the Amazon basin * Amazon (company), an American multinational technology company * Amazons, a tribe of female warriors in Greek myth ...

Insight Partners Insight Venture Management, LLC (commonly referred to as Insight Partners and previously Insight Venture Partners) is a global venture capital and private equity firm that invests in high-growth technology, software, and internet businesses. The ...

, Rhône Capital, and

Salesforce Salesforce, Inc. is an American cloud-based software company headquartered in San Francisco, California. It provides applications focused on sales, customer service, marketing automation, e-commerce, analytics, artificial intelligence, and ap ...

. The new

division will be created to oversee Bergdorf Goodman, Neiman Marcus, and the American operations of the HBC-owned

Saks Fifth Avenue Saks Fifth Avenue (Colloquialism, colloquially Saks) is an American Luxury goods, luxury department store chain founded in 1867 by Andrew Saks. The first store opened in the F Street and 7th Street shopping districts, F Street shopping distric ...

. The Neiman Marcus Group stores will also become sister brands to the off-price

Saks Off 5th Saks OFF 5TH, formerly Saks Fifth Avenue Off 5th, is an American off-price department store chain founded in 1990, and a sister brand to the luxury department store chain Saks Fifth Avenue. Both chains were owned by holding company Saks, Inc., a ...

and Canadian full-line Hudson's Bay department stores through this ownership. On December 23, 2024,

announced that it had completed its purchase of NMG for $2.7 Billion.

Nameplates

Notes

References

External links

* {{Department stores in the United States 1987 establishments in Texas Clothing retailers of the United States Companies based in Dallas American companies established in 1987 Retail companies established in 1987 American companies disestablished in 2024 Retail companies disestablished in 2024 Department stores of the United States Luxury brands Privately held companies based in Texas Private equity portfolio companies 2013 mergers and acquisitions 2024 mergers and acquisitions Companies that filed for Chapter 11 bankruptcy in 2020