US-based luxury department store, Neiman Marcus Group LLC has withdrawn its Initial Public Offering (IPO), which it filed nearly two years back with US regulators to go public, as it grapples with weaker customer demand.
The company’s abandoned IPO underscores the challenges faced as the broader industry struggles under the weight of competitive pressure from off-price stores and online retailers. However, the retailer has declined to comment on the reasons for pulling off the IPO.
Neiman Marcus, which also operates the Bergdorf Goodman and MyTheresa brands, was acquired by private equity firm Ares Management LP and Canada Pension Plan Investment Board three years ago for US $ 6 billion.
For the 12 months ending 26th September 2016, the company reported US $ 4.95 billion in sales, noting decrease of 2.9 per cent as against prior year. Also, it faced a net loss of US $ 406 million compared to net earnings of US $ 14.9 million a year earlier.