Pursuits
A Neiman-Saks Merger Would Create Luxury Empire at Risky Moment
- Chains have prestige but questions swirl over debt, slow sales
- Hudson’s Bay, owner of Saks, seen as bidder for Neiman Marcus
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The prospect of unifying Saks Fifth Avenue and Neiman Marcus -- two of the retail industry’s swankiest brands -- has brought both hope and fear to the department-store chains’ weary investors.
Speculation that Saks owner Hudson’s Bay Co. will buy Neiman Marcus Group Ltd. sent bonds of the latter company surging on Tuesday -- a sign that a deal may bring some payoff for owners of the junk-rated debt. But equity investors in Hudson’s Bay had a more muted reaction, sending shares of the Canadian company down as much as 2.4 percent.