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Neiman Marcus Explores Sale

DALLAS-The most obvious bidder would be another department store chain, analyst says.

By Ian Ritter | Updated on March 16, 2005

DALLAS-The Neiman Marcus Group is exploring the possible sale of the company in order to “enhance shareholder value,” according to a statement released by the department store chain. The upscale retailer, operator of 51 department and clearance stores, probably won’t disclose future possibilities of a sale until its board of directors approves a specific transaction.

“My guess is that they’re at an all-time high, and it would be a great time to sell,” Katherine Galligan, a retailer analyst at Dallas-based research firm Aperion Group, tells GSR. “Luxury has never been better.”

Galligan would not estimate how much Neiman could trade hands for, but she said that there are a number of different suitors that could be interested in the company. Saks Inc. could show interest in order to buy out its main competitor, but it would depend on how many stores the two chains have in close proximity. May Department Stores or Federated Department stores could show interest, in order to get a stronger foothold in the luxury market. But since those two companies are already in an $11 billion merger, it could be a difficult transaction, she said.

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