Saks Global is exploring the sale of a 49% stake in New York’s iconic luxury retailer Bergdorf Goodman, a move aimed at easing the company’s mounting debt load less than a year after acquiring Neiman Marcus Group. The transaction, which could value the minority stake at about $1 billion, has reportedly drawn interest from at least four bidders, including strategic investors and Middle Eastern sovereign wealth funds, according to The Wall Street Journal.
Richard Baker, executive chairman of Saks Global, confirmed the process, describing it as an effort “to unlock value for our stakeholders and de-lever our business.” The potential deal would cover only Bergdorf Goodman’s operating company, not the landmark Fifth Avenue real estate.
Saks Global has faced increasing financial pressure since completing the $2.7 billion Neiman Marcus acquisition last July. The company has struggled with declining luxury sales, strained vendor relationships that have restricted inventory flow, and debt obligations that have weighed heavily on liquidity. In August, Saks secured $600 million in fresh financing as part of a broader debt restructuring, though its $2.2 billion in bonds tied to the Neiman deal have since plunged to around 17 cents on the dollar.
The possible sale of a stake in Bergdorf comes as Saks Global seeks additional ways to stabilize its balance sheet, including plans to sell $600 million in real estate from a property portfolio valued at roughly $9 billion.
