The luxury department store chains were negotiating for months and had explored combining over the years, the Wall Street Journal reports.
DALLAS — Saks Fifth Avenue’s parent company has secured a $2.65 billion deal to buy its rival, Dallas-founded Neiman Marcus with help from Amazon, the Wall Street Journal reports.
The luxury department store chains had been negotiating for months and had explored combining over the years, the newspaper reported.
Amazon and Salesforce would be minority shareholders in the new company, which will be called Saks Global, the Wall Street Journal reported.
HBC, which bought Saks in 2013, is financing the deal with $2 billion raised from existing investors, the newspaper reported.
Marc Metrick of Saks will run the combined company, sources told the Wall Street Journal.
Neiman Marcus had previously filed for Chapter 11 bankruptcy protection in 2020 and came out of bankruptcy with less debt and new owners later that year, the Wall Street Journal reported.
Neiman Marcus’ merger with Saks comes as other department stores are also struggling. Lord & Taylor also filed for bankruptcy in 2020 and closed its stores the following year. Macy’s also recently announced it’s closing 150 stores.
Neiman Marcus has 36 department stores, two Bergdorf Goodman stores and five Last Call discount stores. There are 39 Saks Fifth Avenue and 95 Saks Off 5th discount stores.
It’s unclear what the merger means for Neiman’s storied Dallas headquarters.
Neiman Marcus was founded in downtown Dallas in 1907 by Herbert Marcus, Sr., his sister, Carrie Marcus Neiman, and her husband A.L. Neiman.
Eventually, all of Herbert Marcus, Sr.’s sons joined the company: Stanley and Edward in 1926; Herbert, Jr., in 1932; and Lawrence in 1944.
With the passing of Herbert Marcus, Sr. in 1950, the board of directors of Neiman Marcus elected Carrie Neiman, chairman of the board; Stanley Marcus, president and Chief Executive Officer; and Edward Marcus, executive vice president.
Stanley served as president and CEO until 1969 when the company was sold to Carter Hawley Hale Stores, Inc., and he was named Executive Vice President in charge of the specialty store division.
He served as Chairman Emeritus of the company until his death at the age of 96 in January 2002.