US Luxury Retailer Neiman Marcus Mulls Sale To Rival Saks Fifth Avenue: Report

Luxury retailer Neiman Marcus is reportedly considering a possible sale to its archrival Saks Fifth Avenue. 

The Dallas-based retailer, which also owns Bergdorf Goodman in New York, has been exploring options as it was struggling to stay afloat due to a weak demand, reported the New York Post.

The report noted Neiman is expected to be acquired for $2 billion and above, which is below the $5.1 billion it fetched in the debt-fueled buyout in 2005.

Davidson Kempner Capital Management and Sixth Street Partners, the company's minor stakeholders, have been pushing for the sale of the company.

However, its major investor, Pacific Investment Management Co (PIMCO), argued that the company could improve over time.

After a string of disappointing sales results, PIMCO too has agreed for a possible sale, the report added. 

The company's EBITDA in the June quarter decreased 25% Y/Y with a 9% drop in revenue. The merger, with Saks' 40 stores and Neiman's 38, could reportedly lead to an antitrust scrutiny.