Neiman Marcus has put the kibosh on a proposed merger with Saks Fifth Avenue, according to The Wall Street Journal.
The newspaper, quoting “people familiar with the matter,” said the retailer was concerned about the complexity of any possible deal, how to handle any overlapping stores, and managing the two companies’ very distinct identities. The merger was said to be urged by investment firm KKR.
Neiman currently has private equity owners; according to numerous reports, its current operators are looking for an exit strategy, including taking it public or selling it to another fund. According to The New York Post, one possible buyer is the Qatar Investment Authority, the investment arm of government of Qatar that is now a leading shareholder of Tiffany.
Saks is also said to be facing a possible sale.
The news comes as Neiman Marcus reported healthy third-quarter financial results, with comp revenues increasing 3.6 percent, and revenues increasing 14 percent to $70.8 million.