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US luxury department store withdraws its IPO
This follows plummeting sales at Neiman Marcus in December
January 10, 2017: US-based Neiman Marcus Group filed to withdraw its registration statement for an initial offering, 17 months after filing to go public.
Neiman Marcus Group is a luxury department store headquartered in Dallas, Texas. The group decided to withdraw its filing for an IPO after sales plummeted in December, showing a wide loss in the first fiscal quarter.
“The company has determined that it is not in its best interest to proceed with the initial public offering” at this time, according to a filing with the US Securities and Exchange Commission (SEC).
The retailer previously filed to go public in June 2013 before owners TPG and Warburg Pincus sold it to Ares and CPPIB.
The store has reported five straight quarters of declining comparable sales, including a whopping 8% drop last quarter.
Macy’s and Kohl’s also reported slow sales, causing them to cut future forecasts. Macy’s, the largest department-store company, also pushed ahead with a plan this week to shutter 100 stores and eliminate about 10,000 jobs.
Over the last year, there has been a clear shift to online shopping as compared to physical shopping. Consequently, there has been a significant drop in sales in November and December.
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