Bergdorf Goodman May Sell Minority Stake Amid Saks Global Restructuring

Saks Global Enterprises LLC is reportedly exploring various strategic options for its prestigious luxury department store, Bergdorf Goodman. Among these considerations, the company is said to be focusing on the potential sale of a minority stake in Bergdorf Goodman, a move that could value the upscale retailer in the range of $1.5 billion to $2 billion, according to a recent report by WWD, citing unidentified sources.

This exploration follows previous efforts by Saks Global to test the market for a complete divestment of Bergdorf Goodman. However, the current strategy appears to have shifted towards offering a smaller, non-controlling interest. While WWD's report provided a valuation range for the potential minority stake, it did not specify the exact size or percentage of the stake that might be made available for sale. When approached for comment on these developments, a spokesperson for Saks stated that the company does not typically address rumors or speculation.

These strategic considerations for Bergdorf Goodman unfold against a backdrop of significant financial restructuring at Saks Global. In recent months, the company has undertaken a comprehensive overhaul of its capital structure. This includes the reworking of $2.2 billion in bonds, which were originally issued in December to finance its acquisition of rival luxury retailer Neiman Marcus. Bloomberg has previously reported that Saks Global faced challenges in the aftermath of the Neiman Marcus takeover, experiencing poor sales performance and strained relationships with vendors, which necessitated seeking additional financing just months after the initial bond issuance.