Saks For Sale
By George Anderson
Saks Inc. has reportedly put its 241 regional department stores, including Carson Pirie Scott, McRae’s, Proffitt’s and Parisian, up for sale. The retailer is also said to be willing to consider a deal for its Saks Fifth Avenue chain under the right circumstances and at the right price.
According to The New York Times, Brad Martin, Saks’ CEO, is shopping the regional stores hoping to cash in on the real estate frenzy that has been worked up in retailing circles over the past couple of years. Analysts, reports the Times, believe all of Saks Inc. might bring up to $3 billion in a sale.
Burt Flickinger III, managing director of the Strategic Resource Group, says now is the time for Saks to sell and that it is not likely to get a better deal in the future than it is right now.
Among those mentioned as possible bidders for part or all of Saks’ banners are the Belk’s department store group as well as investment firms the Blackstone Group, the Apollo Group, Bain Capital and Kohlberg Kravis Roberts.
Moderator’s Comment: Of all the mergers/acquisitions in retailing (cross-channel) history, which do you think have been the most and least successful?
What was behind the success or failure? –
George Anderson – Moderator
- Saks Puts Its Regional Stores Up
for Sale and Considers Selling the Fifth Avenue Chain – The New York Times (free reg. required)