Saks, Neiman Marcus Moving ahead with Sell-Off

The talk about the possible sell-off of leading luxury retailers has been around for the past couple of months. And while rumors surrounding Tiffany have subsided, Saks and Neiman Marcus continue to be the names repeatedly mentioned in the market as sales that could go ahead.

Saks, which owns Saks Fifth Ave and a group of mid-price chains, is reportedly considering selling the latter in two geographical clusters, each already managed separately.

The northern stores, which are managed together, include the Carson Pirie Scott, Bergner's, Boston Store, Younkers, and Herberger's chains. The southern stores include McRae's and Proffitt's.

According to reports this morning, the Neiman Marcus Group is considering two bids by private equity firms. Kohlberg, Kravis Roberts & Co., together with Bain Capital Partners, and Thomas H. Lee with The Blackstone Group are, according to Reuters, the two bidding groups.

The bids for the Dallas-based luxury retailer are estimated to be around the $5 billion mark.