Saks Global, the entity that controls Saks Fifth Avenue and off-price chain Saks Off Fifth, has wrapped up its $2.7 billion acquisition of Neiman Marcus Group, the company announced Monday. The company now oversees Neiman Marcus and Bergdorf Goodman with âeach continuing to serve customers under their own brand,â it said in a statement.
âWe have created an unparalleled multi-brand luxury portfolio with tremendous growth potential,â Saks executive chairman Richard Baker said in the statement. âWith data and innovation at our core and a portfolio of prime real estate, we aim to redefine the luxury shopping experience.â
As part of the merger, Amazon, Donna Koran-owner G-III Apparel Group and licensing firm Authentic Brands Group are investors in Saks Global. Authentic will also partner with Saks in a joint venture called Authentic Luxury Group, which seeks to âmaximise the potential of Authenticâs luxury brands across key sectors, including fashion, retail, digital, hospitality, real estate, art, and travel,â according to the announcement Monday.
Saks CEO Marc Metrick will serve as chief executive of Saks Global, while Ian Putnam, CEO of HBC Properties and Investments, will serve as head of Saks Global Properties & Investments. HBC, or Hudsonâs Bay Company, is the holding company of all of the above entities. Metrick and Putnam will report to Baker.
Earlier this month, HBC sold $2 billion in junk bonds to help finance the Neiman Marcus acquisition.
Baker, whose background is in real estate, has made tremendous profits monetising the properties owned by the retailers he has purchased, including Lord & Taylor, which went bankrupt in 2020.
Since last year, there have been numerous reports of Saks vendors claiming the luxury department store has withheld payment. As of this month, BoF can confirm multiple brands are still awaiting payment on orders from Saks.
âAs one company, we have an opportunity to transform the way we serve consumers, blending art and science to ensure each customerâs experience is unmistakably their own,â Metrick said in a statement. With their combined expertise in personalisation and technology, Saks Global is âposed to drive innovation and growth,â he added.
Learn more:
Real Estate Canât Save Department Stores
Their struggling, often bloated businesses and valuable properties make them tempting targets for investors. Selling off these assets can be lucrative, but rarely produces retail success stories.
