Department store retailer hires debt advisor

Hudson’s Bay Co. has brought in professional advice regarding its potential merger with Neiman Marcus.



The Canadian department store company has hired a debt restructuring adviser, investment bank Evercore Partners Inc., to review the potential acquisition and provide Hudson’s Bay Executives with ways on how it could proceed without Hudson’s Bay assuming Neiman Marcus’ full debt, according to a Reuters report on CNBC.com.



In March, Neiman Marcus said it was exploring “strategic alternatives,” which may include the sale of the company or other assets, as well as other initiatives to improve its capital structure. The retailer has also been challenged with declining sales and traffic.



Neiman Marcus is saddled with a hefty debt load of $4.9 billion. Much of it stems from the $6 billion acquisition of the company by the Canada Pension Plan Investment Board and Ares Management in 2013. Hudson's Bay, which already carries about $2.4 billion in debt, does not want to repay Neiman Marcus' creditors in full, the report said.



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