Next Chapter for Neiman Marcus

Neiman Marcus CEO expects retailer's $6 billion sale to boost business

The $6 billion sale of Neiman Marcus, which the Dallas-based luxury retailer announced on Monday, "will be terrific for our business," said CEO Karen Katz, just before the start of the Donna Karan runway show, where Katz had a prime front row seat across from actress Goldie Hawn.

"We're very excited. We've been owned by our two private equity owners, TPG and Warburg Pincus, for eight years," she said. "We knew that we were going to have to figure out the next chapter for Neiman Marcus, and we had a lot of different options. We're really delighted that we are going to be with another private equity firm as well as the Canadian Pension Plan Investment Board.

"There will be no difference in how we interact with customers," Katz said. "That's what's most exciting. To them, it should be a very seamless change of ownership."

"They understand the brand of Neiman Marcus and Bergdorf Goodman, and they are going to invest capital in the business to help us grow. So we're very, very excited."

Katz and senior Neiman Marcus officials are attending fashion week, where they are looking at spring 2014 collections from a wide array of designers.

The new owners, Ares Management and Canadian Pension Plan Investment Board, will hold an equal economic interest in Neiman Marcus. The company's management will retain a minority stake.

The deal is expected to be finalized before the end of the year. No management changes are expected at Neiman Marcus, Katz said. "The management team is sticking around. Most of us have been at Neiman Marcus for most of our career. We're here for the long run. All of that is a very stable situation.

"There will be no difference in how we interact with customers," Katz added. "That's what's most exciting. To them, it should be a very seamless change of ownership."

The new owners have had experience in the retail sector, with investments in General Nutrition Centers and the 99 Cents Only chain of stores, which they purchased for $1.6 billion last year. "They've owned a number of retailers in and out of their portfolio, so they really do understand retail. I think they are every excited about owning a luxury retailer like Neiman Marcus," Katz said.

With the recent announcement that the Hudson's Bay Company in Canada plans to purchase Neiman's main rival, Saks Fifth Avenue, in a $2.4 billion deal, the luxury retail sector is in a state of flux. But Katz believes the changes will benefit Neiman's in the very competitive marketplace.

"When you change ownership, you get a new perspective on the business, a different set of eyes, different challenges," she said. "And I think that's really positive. Just having a different way to look at our business is going to be really helpful to us.

"They are really good people. They are very respectful of our brand. We got to spend a lot of time with them over the summer as a management team. I think it's really going to be a really, really great experience for all of us."

The $6 billion sale "will be terrific for our business" said Neiman Marcus CEO Karen Katz from New York fashion week.

Photo courtesy of The Legacy Senior Communities

The $6 billion sale "will be terrific for our business" said Neiman Marcus CEO Karen Katz from New York fashion week.

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Holiday shopping

New giant Quge-tip from Dallas-based Q-tip sells out in 24 hours

Q-Tip

Q-tip's Quge-tip

A giant version of an everyday product has sold out in 24 hours: Called the Quge-tip, it's a 6-foot version of the iconic Q-tip, the beauty staple that's been around for more than a century.

Measuring nearly six feet from tip to tip, Quge-tips feature enlarged swabs and a sturdy stick modeled after the original Q-tips swabs design.

The Quge-tip was released on December 9 and sold exclusively online in limited quantities for $35. Alas, according to a spokesperson for Dallas-based Elida Beauty, the parent company of Q-tip, the product flew off the virtual shelf.

"Now that they’re sold out, Q-tips is surprising fans with social giveaways," the spokesperson says.

The Quge-tip is one of two products just released by Dallas companies — both of which feel like they could be April Fools Day jokes — except that both are for real.

Dave & Buster's Claw PurseD&B

Dave & Buster's Claw Purse
The Dallas-based eatertainment chain is leveling up holiday gifting with the debut of the Claw Purse, a limited-edition purse designed by Chain. The Claw Purse is inspired by one of the brand's most iconic games — the claw machine — and according to a release, is "the season's most unexpected fashion statement" for anyone who loves bold style, nostalgia, and a little bit of play.

To mark a milestone for the brand, the Claw Purse launches alongside the expansion of Dave & Buster's Human Crane, a viral, full-body game experience that turns guests into the claw — where they are lowered down into a bin of huge prizes to grab whatever they choose.

Beginning in December 2025, the Human Crane will appear in over 112 Dave & Buster's locations with additional stores rolling out nationwide throughout the season.

But back to the purse: It made its debut at Chain's Holiday House, an event at the company's HQ in L.A., where "it quickly became a crowd favorite among creators, stylists, and culture icons," or so says the release. Which also calls this "the first creative collaboration" between Dave & Buster's and Chain, bringing together Dave & Buster's beloved gameplay with Chain's signature culture-forward point of view. So maybe there will be more collaborations in the future.

Q-tip's Qugetip Q-tip's Quge-tipQ-tip

Q-tips Quge-tips
The Quge-tip is a nearly six-foot supersized version of the "iconic" Q-tip cotton swab, first invented in 1923 and the go-to for beauty, baby care, first aid, cleaning, and everyday moments that call for a gentle, precise touch.

The six-foot Quge-tip features enlarged swabs and a sturdy stick modeled after the original Q-tips swabs design — offering a new way to experience an iconic tool at a dramatically large scale, designed as a playful, oversized tribute.

The release nots that Quge-tips tap into a rising trend of consumers using Q-tips swabs for alternative tasks, which now make up a meaningful share of cotton swab use: From dusting high shelves and cleaning hard-to-reach corners to large-scale art projects.

The six-foot Quge-tip features enlarged swabs and a sturdy stick modeled after the original Q-tips swabs design — offering a new way to experience an iconic tool at a dramatically large scale.

The company insists it's a real thing — they do a very funny video mocking late-night ads for cheap products — and that after debuting at qugetips.com on December 9, they sold out of their initial run. One note: They do not reveal how many Quge-tips were sold. It could just be, like 10 that were for sale.

There's a chance they'll be doing another issue, and they encourage interested shoppers to diligently follow their social media.

openings