"Luxury retailer Neiman Marcus files to go public; Plans to raise up to $100 million" by Anne D’Innocenzio and Michelle Chapman | Associated Press, June 25, 2013
NEW YORK — Luxury retailer Neiman Marcus plans to raise up to $100 million by returning to the stock market with an initial public offering.
That amount is likely to change, though, as bankers gauge investor interest....
Neiman Marcus has benefited from affluent shoppers who are willing to drop $1,000 for a pair of stilettos. During the recession, Neiman Marcus was not as hurt by the consumer spending pullback as other retailers, because the wealthy suffered less in the poor economy.
Did they suffer at all?
Still, the initial public offering comes at a time when the stock market, which influences luxury spending, has become volatile....
Related: US wealth gap grew during recovery
The Wall Street Journal reported in late May that Neiman Marcus rebuffed a proposal that would involve buyout firm KKR & Co. investing in competitor Saks Inc., the operator of Saks Fifth Avenue, and then engineering a combination of Saks and Neiman.
According to the Journal, Neiman Marcus turned down the proposal for several reasons, including the terms and the complexity of the deal. At the time, Neiman’s private equity owners were looking to sell the company outright or take it public....
Also see: I Don't Like the Way This Post Looks
NEXT DAY UPDATE:
"Men’s Wearhouse, founder at odds over selling out; Clothing chain, leery of debt, says that now is not the right time" by Anne D’Innocenzio | Associated Press, June 26, 2013
NEW YORK — Men’s Wearhouse escalated a battle with founder and former pitchman George Zimmer, trying to explain why it fired the man who still represents the clothier in many shoppers’ minds.
The company said Tuesday that it parted ways with Zimmer because he had difficulty ‘‘accepting the fact that Men’s Wearhouse is a public company with an independent board of directors and that he has not been the chief executive officer for two years.’’ One bone of contention: He wanted to sell to an investment firm.
Zimmer’s ability to take back control of the company seems limited. But to his fans, he’s winning. Customers are turning to the company’s Facebook and other social media outlets to express outrage. Many were threatening a boycott.
Shoppers themselves could determine what happens next. Zimmer, 64, who founded the company in 1973, has been one of advertising’s most recognizable pitchmen with his slogan: ‘‘You’re going to like the way you look. I guarantee it.’’
No, I'm not liking this.
Men’s Wearhouse said a deal to go private could load the company down with debt.
Never a good idea!