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The owners of struggling retailer Neiman Marcus are in talks to sell the chain to Hudson’s Bay Co., one of its main competitors.
On Tuesday, Neiman Marcus said it hired financial advisers to explore the sale of the company, among other strategic alternatives, the Wall Street Journal reports. The upscale retailer is suffocating under nearly $5B of debt and is struggling to maintain positive sales.
Though interesested, the Canadian department store chain is looking for ways to gain control of Neiman Marcus without assuming its debt. Experts said it is possible if the firm uses certain structures to buy Neiman’s assets without triggering a change in company control. This is one of several potential Hudson Bay moves this year — the retailer approached Macy’s with a possible takeover deal.
