HSBC will purchase the private-label credit accounts and related assets of Neiman Marcus and Bergdorf Goodman for an estimated $640 million, HSBC Retail Services and The Neiman Marcus Group Inc. said yesterday.
The Neiman Marcus and Bergdorf Goodman portfolio includes 3 million accounts.
Neiman Marcus will continue to handle key customer service functions including new account processing, transaction authorization, billing adjustments, collection services and customer inquiries.
Under the long-term agreement, Neiman Marcus will receive payments related to credit sales generated under the new agreement and for certain marketing and servicing activities.
The transaction is to close by July 31, subject to customary regulatory review and closing conditions.
On May 2, The Neiman Marcus Group Inc., which owns Bergdorf Goodman, said it agreed to be sold to two private equity firms for about $5.1 billion.
Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM News.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters