Rosalind Evans
In recent developments within the luxury retail sector, Neiman Marcus CEO Geoffroy van Raemdonck has firmly addressed the escalating rumours regarding a potential acquisition by Saks Fifth Avenue. Speaking to CNBC, van Raemdonck emphasized the company’s stable position, stating, “There’s no need to sell the business,” and projecting that Neiman Marcus is unlikely to change ownership in the next five years. This statement comes amidst a turbulent period for department stores as they navigate challenges in remaining relevant to consumers increasingly favouring direct shopping from brands.
Neiman Marcus, once filing for bankruptcy in 2020, has since regained its footing under the ownership of Pacific Investment Management, Davidson Kempner Capital Management, and Sixth Street Partners. Van Raemdonck noted the company’s resilience, highlighting a “billion of available liquidity” and profitability. Despite the rumours and a reported $3 billion offer from Saks, as covered by the Wall Street Journal, the CEO stressed the absence of any current process to sell the company. He acknowledged the inevitability of a future sale or public offering but reaffirmed that such a move is not imminent.
The luxury retail environment has been described as “volatile” by van Raemdonck, with Neiman Marcus experiencing a slowdown in demand across various segments. This situation mirrors the broader industry challenges, marked by fluctuating customer preferences and a post-Covid market adjustment. A potential merger with Saks, as speculated by some industry insiders, could offer benefits such as cost reductions and better vendor terms, potentially fortifying the combined entity against the evolving retail landscape.
While the future remains open to various possibilities, including a merger, Neiman Marcus, under van Raemdonck’s leadership, is charting a course of independent resilience. The CEO’s firm stance against the current sale rumours reflects confidence in the company’s strategy and ability to navigate the complexities of the modern luxury retail sector.
