High-end retailer Neiman Marcus has backed out of an initial public offering.
The Dallas-based chain initially filed in 2015 to go public but later said it would delay its plans until 2016. Friday, Neiman Marcus said it has abandoned an IPO altogether after deciding that “it is not in its best interests.”
Los Angeles-based investment firm Ares Management and the Canadian Pension Fund acquired Neiman Marcus from private equity firms TPG Capital and Warburg Pincus in 2013 for $6 billion. Proceeds from an IPO were intended to pay down nearly $5 billion in long-term debt.
But like other luxury department stores, Neiman Marcus is facing heightened competition from online retailers. It has reported several quarters of declines in same-store sales. In its first fiscal quarter, which ended Oct. 29, Neiman Marcus reported a net loss of $23.5 million.
Next month, Neiman Marcus will open its new Fort Worth store in the new The Shops at Clearfork shopping center, where it is moving from Ridgmar mall.
Last year, Karen Katz, chief executive of Neiman Marcus, raised some eyebrows after partially blaming bloggers for the company’s poor performance.
Some industry watchers have said the company has suffered from its own missteps, including problems with its e-commerce site.