Saks Fifth Avenue's parent company is in discussions to offload a 49% stake in the luxury department store Bergdorf Goodman for $1bn, as reported by The Wall Street Journal (WSJ).

The potential sale has attracted interest from at least four bidders, including Middle Eastern sovereign-wealth funds and other strategic investors, with a potential deal anticipated as early as 2026. 

“We have initiated a strategic process to explore the potential sale of a minority stake in Bergdorf Goodman,” Richard Baker, executive chairman of Saks Global, was quoted as saying by the WSJ.   

“While Bergdorf Goodman is core to our strategy, this process is intended to unlock value for our stakeholders and de-lever our business.” 

Saks Global, which acquired Bergdorf Goodman as part of its $2.7bn purchase of Neiman Marcus in 2024, is simultaneously working on selling $600m in real estate.  

The company holds properties valued at $9bn, according to a WSJ source.

Bergdorf Goodman is known for its luxury offerings from brands such as Chanel and Hermès, and its prime location on Manhattan’s Fifth Avenue. 

The prospective sale would involve a stake in the operating company, excluding its real estate, which remains under the ownership of the founding Goodman family. 

Bergdorf Goodman's history dates back to 1899, originating from a tailor's shop opened by Alsatian immigrant Herman Bergdorf.  

The store has occupied its current Beaux Arts building since 1928 and was sold to Broadway-Hale stores, later Neiman Marcus, in 1972. 

Before Neiman Marcus's acquisition by Saks, a sovereign-wealth fund expressed interest in purchasing Bergdorf Goodman outright for $1.5bn.

The total valuation of Bergdorf Goodman is estimated between $1.5bn and $2.5bn.

Saks and Neiman Marcus have faced hurdles, including a downturn in luxury goods sales, with Saks experiencing difficulties in vendor payments.  

In June 2025, Saks secured $600m in new funding from bondholders. 

The merger of Saks and Neiman Marcus is anticipated to generate $600m in synergies through combined back-office operations and reduced staffing redundancies. 

A decade after acquiring Saks Fifth Avenue, its flagship Manhattan store was appraised at $3.7bn, surpassing the $2.9bn purchase price for the entire Saks brand. 

Following the acquisition of Lord & Taylor, Baker sold its Manhattan flagship to Amazon for $1.15bn.  

Lord & Taylor was subsequently sold to fashion-rental service LeTote and filed for bankruptcy in 2020.