Neiman Marcus plans to use proceeds from the IPO to repay debt.
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Neiman Marcus Group has filed paperwork that’s a first step in an initial public offering of common stock.The company said Tuesday that it plans to raise a maximum of $100 million. Ares, along with a Canadian pension fund, bought the company for $6 billion in 2013.
According to IPO documents, Neiman Marcus intends to remodel 53% of its stores, including Bergdorf Goodman and its owned stores in California, Massachusetts and Texas.
The MyTheresa brand, which was acquired by Neiman Marcus in October 2014, appeals to younger, fashion-forward, luxury customers, primarily from Europe, Asia and the Middle East, with one flagship store in Munich, Germany.
While the company (which also owns Bergdorf Goodman) has stores in 19 states, including Washington DC, wealth intelligence firm Wealth-X noticed a trend when it came to the retailer’s preferred locations.
Based on its regulatory filing, Neiman Marcus owns 856,000 square feet of stores and 2.3 million square feet of space subject to ground lease. The company has posted 22 consecutive quarters of positive comparable store sales growth through the end of the third quarter of fiscal 2015.
The global luxury fashion market is projected to grow from $308 billion in 2015 to $354 billion in 2019, according to Euromonitor worldwide, Neiman said in its SEC filing.
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In a filing with the Securities and Exchange Commission on Tuesday, the Dallas-based company seeks to become publicly traded under the ticker symbol NMG. The company did not name the underwriters for the offering. The final size of the IPO could be different.
