Bearing a debt more than 6 billion USD, Neiman announced a sale plan,, including shoes shelves, display cabinet, showcases. Before that it had plan to negotiate with Saks Fifth Avenue owner Hudson’s Bay a potential combination but it seemed didn’t goes well. Facing stiff competition from Amazon.com and other fast fashion, Neiman cannot even meet a less attractive requirement.
After its owner swift since 2013, the companies then stemmed from a $6 billion leveraged buyout and beard most of its debt load from that on. The company has made no profit but loss in 2015 and has to give its products a sale. Its piled debt stalled the plan to any acquisition for other company. Most importantly, half of the piled debt due in 2020 which pushes the new owner of Neiman up to the wall and no chance to risk in further Neiman business marketing strategy but was handled in trying to turn the business around.
But there is still ways to relief the debt burden.
One way as the company had already announced to the public is make its subsidiaries holding online store My Theresa and some of its real estate free of debt in acquisition, if it work, the company can issue new debt to buy back its bond in a discount so that a debt slash is possible.
Recently, Neiman has a quarter losses of $24.9 million while its one year profit is 3.8million. In this account, the acquisition seems much more difficult to accomplish. Early in this year in three months ending in January, Neiman reported poor financial results of a $120 million operation loss and a six straight quarter of declining sales. In terms of all the difficulty, its debt had been trading at about 50 cents on the dollar. The debt market didn’t see a positive circumstance of Neimen’s huge financial distress. The stiff competitor Amazon.com placed a fatal challenge to many retailers into intensive care. Some of those retailers also suffered such dilemma, such as Galeria Kaufhof and Galeria Inno in Europe had made a bid for another old-line U.S. retailer, Macy’s, according to source from CNN Money. These days when consumption focus on daily use, food, traveling and pay small attention to luxury, the future of Neiman was made more fluctuation.
But Neiman has some strategies anyway. News was reported that the company has high-profile exclusive merchandise with limited availability or distribution, and that helps it sold out an entire collection in a few days. A more promising plan will be in place to use technology for its online and in the store market to personalize consumers, and that open a new strong marketing way. One of the similar method is to email the consumers targeted content of Neiman products according to their preference, which turned out to be a key driver of traffic, so that the company website can rise the online traffic. Another way to draw the consumers’ attention is to promote exclusively luxury brand which are rare to be show in other websites and store of other competitors, when consumers’ cannot find those exclusive brand other websites or store, they will go to Neiman.
Post time: Jun-26-2017