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Saks Global, the parent company of Saks Fifth Avenue, is considering selling a minority stake in Bergdorf Goodman as part of efforts to reduce debt. The luxury retailer, which operates women's and men's stores on Fifth Avenue in New York, is seen as central to the group's long-term strategy. Reports suggest the company is in talks with multiple bidders for a potential 49% stake valued at around USD 1 billion, though no final decision has been made. The move follows Saks Global's acquisition of Neiman Marcus last year for USD 2.65 billion.
Saks Global, which owns luxury retail chains including Saks Fifth Avenue and Neiman Marcus, has begun exploring the sale of a minority stake in Bergdorf Goodman. A company spokesperson said the possible transaction is aimed at reducing debt tied to the group's recent expansion. Advertisement
According to reports, Saks Global is in discussions with at least four interested bidders regarding a potential 49% stake in Bergdorf Goodman. The stake is estimated at about USD 1 billion and would give investors a share in the operating company, while the real estate remains under the ownership of the store's founding family.
Bergdorf Goodman, a well-known name in luxury retail, runs separate women's and men's stores on Fifth Avenue in Midtown Manhattan. Its portfolio includes globally recognized fashion brands such as Gucci, Prada and Jimmy Choo.
Saks Global was formed last year by Hudson's Bay Company following its USD 2.65 billion acquisition of Neiman Marcus. The deal created a combined luxury retail and real estate group, bringing together Saks Fifth Avenue, Neiman Marcus, and other related assets.
Despite the potential stake sale, Saks Global maintains that Bergdorf Goodman remains central to its overall strategy. The company noted that the move is part of a plan to make better use of its assets while addressing the debt taken on from recent acquisitions.
The luxury retail sector in the United States has been facing uneven demand as inflation and tariff concerns weigh on consumer spending. This environment has prompted retailers, including Saks Global, to reassess their strategies for long-term growth and stability.
Source Reuters
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