US upmarket department store Neiman Marcus plans float to raise $100 millionComments Off on US upmarket department store Neiman Marcus plans float to raise $100 million
Bosses explained to the market just how wealthy its clientele are by revealing 40% of its customers have a median household income of more than $200,000 (£128,000) a year.
The department store chain, which owns 41 stores, 42 Last Call outlets and Bergdorf Goodman on Manhattan’s fashionable Fifth Avenue, hopes to raise $100 million from the float used to pay down a $4.7 billion debt pile.
Current owners Ares Management and the Canadian Pension Plan Investment Board will retain a majority stake in the business, bought in 2013 for $6 billion.
Neiman Marcus, whose advertising campaigns have featured actress Drew Barrymore, saw its sales jump 5% to $1.2 billion during the three months to May 2 compared with last year and swung to a $19.8 million profit after a loss of $8 million in the same quarter last year.
It has been in private hands for the last decade with several private-equity investors.
However, the current owners hope to cash in on a boom in luxury spending in the US.