Related Cos. Considering Neiman Marcus Acquisition To Save Hudson Yards Deal

The Shops At Hudson Yards, Neiman Marcus
Courtesy of Related/Oxford
The Shops At Hudson Yards, Neiman Marcus

Related Cos. met with upscale retailer Neiman Marcus earlier in May to discuss a possible investment or acquisition partnership. The mastermind behind New York's $20B Hudson Yards development is concerned the retailer may be in need of financial assistance as it prepares to anchor Hudson Yards' 1M SF retail complex, the New York Post reports.

Sources told the Post that Related is panicked it will lose its anchor for the entire project. Sources said most of the other leases already secured (the project is 70% leased) are subject to the Neiman Marcus lease for a three-story, 250K SF location at the center between 31st and 32nd streets on 10th Avenue. Related's retail hub will feature 100 high-end tenants and is scheduled to come online in fall 2018.

Executives from both companies met on May 12 at the office of investment banker Lazard, Neiman Marcus' new financial adviser. Related chairman Stephen Ross called the meeting, sources told the Post.

Neiman Marcus has been on a downward spiral, posting six straight quarters of declining sales as it struggles to shoulder roughly $5B in debt. In March, the Dallas-based chain said it is exploring strategic options and a possible sale. It was in talks with Saks Fifth Avenue owner Hudson's Bay about a potential sale, but those discussions have stalled.

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