Dallas-based Neiman Marcus, which acquired the Germany-born luxury online retailer in 2014, said in a U.S. Securities & Exchange filing on Monday that it has “commenced a process to explore and evaluate strategic alternatives with respect to MyTheresa.”
“No decision has been made to pursue any specific transaction or other strategic alternative, and there can be no assurance that the exploration of strategic alternatives will result in the completion of any transaction,” the group stated in the filing.
Neiman Marcus has been embroiled in a contentious battle with one of its creditors, investment firm Marble Ridge, since last fall over its move to transfer the MyTheresa e-commerce unit to its private equity owners (Ares Management and the Canada Pension Plan Investment Board). Marble Ridge had interpreted the move as one that would buffer MyTheresa from collection attempts by creditors.
Since yesterday’s SEC filing, the investment firm has doubled down on its claims that Neiman Marcus is looking to move MyTheresa around in hopes of avoiding paying off its debts.
“The Neiman Sponsors today announced the third step in what Marble Ridge contends is a scheme to place the valuable MyTheresa assets beyond the reach of Neiman’s creditors,” Marble Ridge said in a statement on Monday. “At the same time, the Sponsors continue to mismanage Neiman Marcus, as underscored by Neiman’s just reported weak financial results.”
Neiman Marcus said yesterday that for the third fiscal quarter ended April 27, it expects to report a decline of 1.3% to 1.9%. in comparable revenues, marking the end of six straight quarters of comparable sales gains. It also calls for adjusted EBITDA of $119 million to $129 million compared to $143.1 million for the third quarter of fiscal year 2018. (All figures on a U.S. basis.)
For the nine months ended March 31, MyTheresa saw sales and Operative EBITDA of €272.046 million ($311.5 million) and €15.287 million ($17.4 million), respectively.
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