Editor’s Note
This article reports on the completion of Saks Global’s $2.7 billion acquisition of Neiman Marcus, a major consolidation in the U.S. luxury retail sector.
Saks Global, the operator of luxury department stores including Saks Fifth Avenue based in New York, USA, has announced the completion of its acquisition of fellow American luxury retailer Neiman Marcus. The total acquisition value is $2.7 billion (approximately 423.9 billion yen, at 1 USD = 157 JPY).
Neiman Marcus, founded in 1907, faced financial difficulties after temporarily closing 43 stores in 2020 due to the spread of COVID-19 in the United States. Burdened with over $4 billion in debt, the company filed for Chapter 11 bankruptcy protection (equivalent to Japan’s Civil Rehabilitation Act) in May of that year. It subsequently received a merger proposal from its competitor Saks Fifth Avenue, backed by hedge fund Mudrick Capital Management LP, a holder of some of its debt.
In July of this year, Saks Fifth Avenue announced it had reached a definitive agreement to merge with and acquire Neiman Marcus for $2.65 billion. As part of the merger, Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus, and Bergdorf Goodman were consolidated to form the new company, Saks Global.
