Saks Global, the parent company of Saks Fifth Avenue, is reportedly engaged in discussions to divest a 49% stake in the high-end retailer Bergdorf Goodman for an estimated $1 billion. This development, first reported by the Wall Street Journal, is said to involve at least four potential bidders, which include sovereign wealth funds from the Middle East and various strategic investors. The negotiations could culminate in a deal as early as the beginning of next year.
The creation of Saks Global took place in July of the previous year, following the Hudson’s Bay Company’s acquisition of Neiman Marcus for $2.65 billion. This strategic move amalgamated Saks Fifth Avenue, Neiman Marcus, and other luxury retail as well as real estate assets under one umbrella.
If the sale proceeds, the funds raised would be instrumental in aiding Saks Global in reducing the debt accrued from the Neiman Marcus acquisition. Additionally, the company is in the midst of a separate initiative to offload $600 million worth of real estate. Currently, Saks Global’s real estate portfolio includes properties valued at approximately $9 billion.
As of now, Reuters has not been able to independently verify the information regarding the stake sale. Both Saks Global and Bergdorf Goodman have not provided comments in response to requests outside of regular working hours.
