Neiman Marcus Turns Down $3 Billion Bid from Saks: Report

Neiman Marcus rejected Saks Fifth Avenue's latest offer to buy the luxury department chain for $3 billion.

The rejection is part of continuing on-and-off talks dating back over a decade between the retail rivals over a potential merger, according to The Wall Street Journal.

Sources familiar with the matter told the Journal that the latest talks hit a snag regarding the structure of the deal, which had a large non-cash portion.

Negotiations are expected to continue. If a deal is ultimately reached, it appeared unlikely to be finalized before early next year, the Journal reported. Neiman Marcus, headquartered in Dallas, operates 36 department stores and two Bergdorf Goodman locations. Saks, of New York, operates a network of 41 stores.

Neither company responded to requests for comment from The Messenger.

The news comes as both companies have had recent financial struggles. In 2020, Neiman's parent company, the Neiman Marcus Holding Group, filed for bankruptcy. It emerged from the proceedings later that year having eliminated $4 billion in debt.

Last month, the Globe and Mail reported that Saks's parent company, HBC, raised $340 million from real estate sales to help make overdue payments to suppliers.

A merger of the two upscale retail chains could help them both negotiate better deals with luxury designers who have also been consolidating, giving them greater power in negotiations with retail outlets. In August, Tapestry, Inc., owner of Coach, Kate Spade and Stuart Weitzman, reached an $8.5 billion agreement to buy Capri Holdings Limited, the parent company of Versace, Jimmy Choo, and Michael Kors.