Dive Brief:
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Neiman Marcus Group in an email Monday denied a report from the New York Post that it's in conversations to sell Bergdorf Goodman. The Post last week said that the company is talking with banks to drum up financing for its famous Manhattan store, including a possible sale.
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"We have no intention nor are we looking to sell Bergdorf Goodman at this time," a spokesperson said in an email. "We are strategically investing in our business and our brands with the intention of growing and strengthening the company."
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Per the Post, former Barneys New York landlord Ashkenazy Acquisition Corp. is interested in buying Bergdorf, in part to fill that now vacated Manhattan building. WeWork founder Adam Neumann is also reportedly prepping a bid with Sam Ben-Avraham, who attempted to buy Barneys out of bankruptcy two years ago. Neither Ashkenazy nor Ben-Avraham responded to requests for comment.
Dive Insight:
If Neiman Marcus does eventually let Bergdorf Goodman go, it would mean leaving New York City.
The company closed down its own namesake store at Hudson Yards after barely a year, deciding not to reopen it after closing it due to the pandemic. That store, which opened to great fanfare after scaling back its plans somewhat, represented a departure from its long-ago promise not to compete with Bergdorf in the city. The company bought Bergdorf Goodman in 1972.
Whatever its plans for New York once were, they have likely been overshadowed by its financial difficulties. After emerging from bankruptcy last fall, the company refinanced another billion dollars in debt in March.
Moreover, the company is drastically overhauling its operations to focus on e-commerce. In January, Neiman Marcus Group instituted a series of C-suite changes, including the departure of Chief Digital Officer Katie Mullen, and announced an $85 million supply chain investment. The company said then that it is "grouping technology, digital products, and advanced analytics under one leader and distorting capital to these areas."
