On July 4, 2024, Hudson’s Bay Company (HBC) L.P., the parent company of Canadian retailer Hudson’s Bay, acquired Neiman Marcus Group in a $3.57 billion (US$2.65 billion) deal, including an investment from Amazon.com Inc. This move aimed to consolidate luxury department stores amid inflation and rising interest rates.

HBC planned to form Saks Global, merging Saks, Saks Off 5th, Neiman Marcus, and Bergdorf Goodman. The combined U.S. real estate assets, valued at $9.44 billion (US$7 billion), would be held by Saks Global, while Canadian operations would remain a separate division with real estate worth $2.69 billion (US$2 billion). The deal aimed to recapitalize and enhance liquidity for the struggling Canadian business.

The financing involved equity from investors like Amazon and Salesforce Inc., with Apollo Global Management providing $1.55 billion (US$1.15 billion) in debt financing. A $2 billion (approximately CAD 2.69 billion) revolving asset-based loan facility was secured from underwriters, including Bank of America, Citigroup, Morgan Stanley, RBC Capital Markets, and Wells Fargo.

M. Klein & Company served as the lead financial and capital markets advisor to HBC. Solomon Partners also acted as a financial advisor, with Elm Street Advisors providing strategic, commercial, and operational advice. Deloitte served as a financial and tax advisor, and Willkie Farr & Gallagher LLP acted as legal counsel.

J.P. Morgan and Lazard advised Neiman Marcus Group (NMG), with Sullivan & Cromwell LLP as legal counsel. Berenson & Company advised Insight Partners. The deal is subject to regulatory approvals and other closing conditions.