Facebook Looking To Take Over Neiman Marcus Space in NYC: Report

Facebook Looking To Take Over Neiman Marcus Space in NYC: Report

A spokesperson for Neiman Marcus said the retailer’s restructuring plan is ‘focused on alleviating our debt load’

Facebook is eyeing a takeover of Neiman Marcus’ Hudson Yards location in New York City, according to a report by fashion publication Women’s Wear Daily.

According to a source cited in WWD’s report, real estate developer Related Companies is in talks with the social media giant to acquire all three floors of Neiman Marcus’ 188,000-square-foot space.

“Neiman wants out. Hudson Yards wants them out. They are figuring out an exit agreement,” the source told the publication.

The news comes following Neiman Marcus’ Chapter 11 bankruptcy filing on May 7, which allows the retailer to back out of its lease with no penalties.

A pedestrian wearing a protective mask and walking a dog passes in front of a Neiman Marcus Group Inc. store in Hudson Yards in New York on Tuesday, May 5, 2020. (Nina Westervelt/Bloomberg via Getty Images)

A spokesperson for Neiman Marcus declined to comment on the potential takeover, saying “any related discussions with landlords are confidential.” They did say, however, that the company’s restructuring plan is “focused on alleviating our debt load.”

“We are confident in the performance of our overall store footprint. In fact, stores that have been open for more than a year prior to COVID-19 are 4-wall EBITDA positive,” the company added. “That said, we always assess our stores based on our footprint to ensure it is optimal to enhance revenues and overall profitability, as well as how each store can best support our omnichannel strategy.”

According to the company, over 90 percent of its stores are open for either curbside pickup, private appointment, full shopping or a combination.

“All of our stores are scheduled to reopen in the coming weeks as local and state mandates allow and as we feel it is safe to do so,” the spokesperson added.

A spokesperson for Facebook told FOX Business that they “constantly review our real estate options, and we don’t have anything to share at this time.”

Facebook has already acquired more than 1.5 million square feet of space in the same development as Neiman Marcus’ Hudson Yards location after signing a lease in November 2019.

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FBFACEBOOK INC.239.22+0.43+0.18%

source: https://www.foxbusiness.com

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