Description
Neiman Marcus Group is an American chain of luxury department stores owned by the Neiman Marcus Group, headquartered in Dallas, Texas. The company also owns the Bergdorf Goodman department stores and operates a direct marketing division, Neiman Marcus Direct, which operates catalog and online operations under the Horchow, Neiman Marcus, and Bergdorf Goodman names. Neiman Marcus is currently owned by the Toronto-based Canada Pension Plan Investment Board and Los Angeles–based Ares Management. The company filed for bankruptcy on May 7, 2020, due to high debts.
History
Early history
Herbert Marcus Sr., a former buyer with Dallas' Sanger Brothers department store, had left his previous job to found a new business with his sister Carrie Marcus Neiman and her husband, A.L. Neiman, then employees of Sanger Brothers competitor A. Harris and Co. In 1907 the trio had $25,000 from the successful sales-promotion firm they had built in Atlanta, Georgia, and two potential investments of funds. Rather than take a chance on an unknown "sugary soda pop business," the three entrepreneurs rejected the fledgling Coca-Cola company and chose instead to return to Dallas to establish a retail business. For this reason, early company CEO Peb Atera was quoted in 1957 as saying in jest that Neiman Marcus was "founded on bad business judgment." The store, established on September 10, 1907, was lavishly furnished and stocked with clothing of a quality not commonly found in Texas. Within a few weeks, the store's initial inventory, mostly acquired on a buying trip to New York made by Carrie, was completely sold out. Oil-rich Texans, welcoming the opportunity to flaunt their wealth in more sophisticated fashion than was previously possible, flocked to the new store. In spite of the Panic of 1907 set off only a few weeks after its opening, Neiman Marcus was instantly successful, and its first several years of operation were quite profitable.
In 1914 a fire destroyed the Neiman Marcus store and all of its merchandise. A temporary store was opened for 17 days. By the end of 1914, Neiman Marcus opened its new, permanent location at the corner of Main Street and Ervay Street. With the opening of the flagship Neiman Marcus Building, the store increased its product selection to include accessories, lingerie, and children's clothing, as well as expanding the women's apparel department. In its first year at the new building, Neiman Marcus recorded a profit of $40,000 on sales of $700,000, nearly twice the totals reached in its last year at the original location.
In 1927 the store expanded and Neiman Marcus premiered the first weekly retail fashion show in the United States.
2010–present
In August 2013, Women's Wear Daily reported that the Neiman Marcus Group was preparing for an initial public offering of its stock. In October 2013, the Neiman Marcus Group was sold for $6 billion to Ares Management and the Canada Pension Plan Investment Board. In August 2015, the company again announced it was preparing for an initial public offering. In late 2015 Neiman Marcus became a stand-alone company.
Neiman Marcus made headlines in November 2013 after the firm discovered a 25-carat rough diamond off Namibia's coast, which was valued with a reserve price tag of $1.85 million. The diamond was referred to as the "Nam Diamond".
In April 2019, Neiman Marcus acquired a minority stake in Fashionphile, an online resale platform for handbags, jewelry and accessories.
In April 2020, Neiman Marcus was reported to be preparing to file for bankruptcy, due to the economic impact from the COVID-19 pandemic. The company stopped accepting new merchandise and furloughed approximately 14,000 employees in late March. S&P downgraded Neiman's credit rating on April 14.
