Saks Faces Bankruptcy Risk After $2.7B Merger with Neiman Marcus Amid Debt Crisis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 18h ago
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Source: Newsfilter
- Post-Merger Struggles: The $2.7 billion merger between Saks and Neiman Marcus has failed to enhance competitiveness as expected, leaving the company facing bankruptcy protection due to mounting debt and sluggish store traffic.
- Escalating Debt Pressure: Saks took on $2.2 billion in debt for the Neiman Marcus acquisition, aiming for $600 million in cost savings over five years; however, the luxury market's failure to recover has strained cash flow.
- Supply Chain Crisis: Insufficient cash led Saks to delay vendor payments, resulting in over 100 brands halting shipments, which severely impacted sales capabilities and exacerbated financial troubles.
- Uncertain Restructuring Outlook: Saks missed a $100 million interest payment, raising the possibility of bankruptcy filing; while its property portfolio is valued at nearly $4 billion, the future of its retail operations remains uncertain.
Analyst Views on M
Wall Street analysts forecast M stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for M is 15.70 USD with a low forecast of 6.00 USD and a high forecast of 19.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
1 Buy
10 Hold
1 Sell
Hold
Current: 22.480
Low
6.00
Averages
15.70
High
19.00
Current: 22.480
Low
6.00
Averages
15.70
High
19.00
About M
Macy's, Inc. is an omni-channel retail company. The Company operates stores, websites and mobile applications under three brands, Macy's, Bloomingdale's and Bluemercury, which sell a range of merchandise, including apparel and accessories (men's, women's and kids'), cosmetics, home furnishings and other consumer goods. The Company has stores in 43 states, the District of Columbia, Puerto Rico and Guam. Its operations are conducted through Macy's, Macy's Backstage, Macy's small format, Bloomingdale's, Bloomingdale's The Outlet, Bloomie's, and Bluemercury. In addition, Bloomingdale's in Dubai, United Arab Emirates and Al Zahra, Kuwait are operated under a license agreement with Al Tayer Insignia. The principal private label brands offered by the Company include Alfani, And Now This, Aqua, Bar III, Cerulean 6, Charter Club, Club Room, Epic Threads, first impressions, Giani Bernini, Holiday Lane, Home Design, Hotel Collection, Hudson Park, Ideology, I-N-C, jenni, JM Collection, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
