(Reuters) - Saks Global, parent of upscale department store chain Saks Fifth Avenue, said it has begun a process to explore selling a minority stake in luxury retailer Bergdorf Goodman to help reduce debt,
a spokesperson told Reuters on Monday.
The stake sale in the high-end department store would help the company reduce debt, the Saks Global spokesperson said.
The move comes as demand for luxury goods remains choppy in the United States, with inflation and tariff concerns weighing on retailers and dampening consumer demand.
Saks Global was created last July by Hudson's Bay Company (HBC) after its $2.65 billion acquisition of Neiman Marcus, combining Saks Fifth Avenue, Neiman Marcus and other luxury retail and real estate assets.
Bergdorf Goodman remains core to the company's strategy, and Saks Global is exploring a stake sale to "maximize the potential" of its assets, though no final decision has been made, the spokesperson said.
The Wall Street Journal reported Sunday that Saks Global is in talks with at least four bidders to sell a 49% stake in Bergdorf Goodman for $1 billion to help pay down debt from its Neiman Marcus acquisition.
Bergdorf Goodman operates two separate women's and men's stores across the street from each other on Fifth Avenue in Midtown Manhattan and sells brands including Gucci, Prada and Jimmy Choo.
The Journal said a buyer would receive a stake in the operating company, not the real estate, which is owned by its founding namesake family.
(Reporting by Ananya Sachin Palyeker, Surbhi Misra and Juveria Tabassum in Bengaluru; Editing by Cynthia Osterman, Chizu Nomiyama and Tasim Zahid)
