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Neiman Marcus exploring options — including sale


Seeking relief from its heavy debt load, Neiman Marcus Group announced Tuesday it has hired financial advisors to explore strategic alternatives, which could include a sale of the company or other assets.

The luxury department store retailer also reported its sixth consecutive quarter on sales declines, posting a 6.8% drop for the second quarter.

Neiman Marcus has 42 namesake stores and 27 Last Call outlet stores. The company, which also operates the Bergdorf Goodman and MyTheresa brands, was acquired in 2013 by Ares Management LP and Canada Pension Plan Investment Board for $6 billion. It is carrying a debt load of approximately $4.9 billion.

For the second quarter, Neiman Marcus reported total revenues of $1.40 billion, down 6.1% compared to the year-ago period. Same-store sales fell 6.8%.

On the retailer’s quarterly call, CEO Karen Katz said problems with new systems, which included inventory tracking, have resulted in some sales losses over the past six months.

Neiman Marcus reported a net loss of $117.1 million for the quarter, ended Jan. 28, compared to net earnings of $7.9 million the period. The company also took a $153.8 million impairment charge.
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