Neiman Marcus CEO addresses Saks sale rumors

ORLANDO, Fla. — As rumors swirl over whether Saks Fifth Avenue will acquire Neiman Marcus, Neiman’s CEO told CNBC there’s “no need” to sell the business, adding it’s unlikely to change hands in the next five years. 

Neiman’s largest competitor and biggest rival has reportedly made a series of bids to acquire it over the years, and most recently made a $3 billion offer that was rejected, The Wall Street Journal reported in December. The takeover attempt comes as department stores struggle to stay relevant while many shoppers opt to shop from their favorite brands directly. It also comes as the luxury industry resets after a surge in demand during the Covid-19 pandemic that has begun to taper off for some.

Some people close to the companies have told CNBC a merger between the two is inevitable, and is a matter of when, not if. But Neiman’s CEO Geoffroy van Raemdonck said there is currently “no process to sell the company.” 

“In the history of times, there’s been multiple conversations over maybe two decades, from each side looking at it, and it hasn’t happened,” van Raemdonck told CNBC on Tuesday during the ICR Conference in Orlando. “What I can say is that our shareholders don’t have the need to sell the business because we have a billion of available liquidity, we’re profitable and we’re reporting results that are in a good place and can only be better as we execute on our strategy and the economy rebounds and so there’s not an urgency on our side.” 

Since Neiman filed for bankruptcy in 2020, Pacific Investment Management, Davidson Kempner Capital Management and Sixth Street Partners have owned the luxury retailer. Eventually, those owners will seek to offload the business, but van Raemdonck said it won’t be any time soon. 

“In the future, they will sell, and that future is probably the next five years. Sell or go public…