P.M. BRIEFING : Firm to Raise Stake in Neiman
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CHESTNUT HILL, Mass. — General Cinema Corp. today said it would buy the shares of the prestigious fashion retailer Neiman Marcus that it does not already own for $240 million in cash.
Chestnut Hill-based General Cinema, one of the nation’s largest movie theater operators, now owns about 60% of Neiman Marcus Group Inc. but controls only 44% of the voting stock. It said it will buy the rest of the stock in a tender offer for $14.40 a share.
Neiman Marcus operates 22 stores under that name and 228 Contempo Casual woman’s clothing stores, as well as Bergdorf Goodman in New York.
Its popular Christmas catalogue is known for offering unusual and extravagant gifts.
While the retail sector has been sluggish, Neiman Marcus is expected to prove somewhat resistant to the economic slowdown because it caters to wealthier clients who do not cut back much on spending.
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