Saks owner in 'advanced talks' to buy Neiman Marcus

Neiman Marcus said earlier on Tuesday it was exploring strategic alternatives including a sale of the company

While the source cautioned that "no deal has been signed", the source nevertheless added that Hudson's Bay has already "done its due diligence" on a prospective acquisition of Neiman, which also owns the Bergdorf Goodman stores on Fifth Avenue.

If acquired, Neiman Marcus - the operator of about 40 men's and women's apparel and accessories shops - would be placed with Hudson's Bay's other notable upscale brands including Lord & Taylor and Saks Fifth Avenue.

Neiman and Saks - which have duked it out for decades in a battle to rule the United States luxury market - would surely preserve their separate identities as retailers in any merger, insiders said.

The sources say that Hudson's Bay is looking for a deal that would give it control of Neiman Marcus but wouldn't involve assuming the company's debt.

Canadian department store chain Hudson's Bay has entered into negotiations over the acquisition of Nieman Marcus, a rival USA luxury chain.

Hudson's Bay says that as a matter of company policy, it does not comment on rumors or market speculation.

The company, which is based in Dallas, operates 42 Neiman Marcus stores, and owns two Bergdorf Goodman luxury stores in NY and 27 off-price Last Call clearance centers, according to its website. It also owns Galeria Kaufhof, Galeria INNO and Sportarena in Europe.

The Dallas-based retailer reported a 6.1 percent drop in second quarter revenues, totaling $1.4 billion.

Last month, there was a media report that Hudson's Bay was eyeing to take over another American retail chain, Macy's.

It is now owned by Canadian Plan Investment Board and Ares Management.



Other news