Not only did it lead to a six-fold increase in her sales, as people went online to purchase her products, but it might be a factor in the financial troubles of one chain of stores that boycotted Ivanka.
From the Cut on February 4:
Racked is reporting that Neiman Marcus has joined Nordstrom as the latest retail giant to drop Ivanka Trump’s namesake line since feeling the effects of the #GrabYourWallet boycott. The grassroots effort has mobilized shoppers to boycott stores that stock Trump’s clothing and accessories, and like last week’s #DeleteUber hashtag frenzy, it seems to be working. The high-end jewelry from Ivanka Trump’s line is no longer for sale on Neiman’s site, and Racked confirmed it’s been pulled from at least one brick-and-mortar store in New Jersey.The boycott is working, eh?
In 2013, Ares Management and the Canadian Pension Plan Investment Board bought the luxury stores of Neiman Marcus for $6 billion in a leveraged buyout. Four years later, things have gone south for Neiman Marcus.
From the Dallas Morning News on April 20:
Today, Neiman Marcus, which also owns Bergdorf Goodman in New York, is worth less than its owners paid for it in 2013. But like a mortgage on a house that’s underwater, the debt of almost $5 billion looms large.Obviously, the problems of Neiman Marcus began long before it began virtue signaling about the Trump clan.
- The company posted a loss of $406 million on sales of almost $4.95 billion last year.
- In February, S&P Global Ratings downgraded the retailer's credit rating saying the company's heavy debt load is “unsustainable” unless the weak outlook for the luxury department store improves. The company's bonds have been trading at 60 cents on the dollar.
- Neiman Marcus said last week it will make interest payments over the next six months with new debt to preserve its cash and bank line of credit. It has chosen to pay 9.5 percent interest on $600 million notes due in 2021 by issuing more debt.
- Last month, it also carved out some assets into unrestricted subsidiaries including MyTheresa, a luxury online retailer based in Munich that it purchased in October 2014, and 41 acres of land in Longview where its 612,000-square-foot primary distribution facility is located. Removing those assets out from under its debt, a loophole it exercised, gives it more flexibility.
- Neiman Marcus had $105.8 million in cash on hand as of April 1 and $423.3 million of unused borrowing available to it under its $900 million asset-based revolving credit facility.
But caving in to a boycott is a sign that management is more concerned with political correctness than it is concerned about making-a-buckness.
That the Canadian Pension Plan Investment Board got roped into this deal deserves answers up north, but that is, oh, Canada's problem.
A month after caving to the snoots in the 21st century equivalent of the temperance league, Neiman Marcus restored Ivanka's product line.
Too late.
From Zero Hedge, the 22 retail chains that Moody's said face a trip to bankruptcy court:
Boardriders SA - sporting subsidiary of QuiksilverTwo things to remember: 1. Liberal boycotts never work. 2. Feuds with people named Trump always backfire.
The Bon-Ton Stores - parent of department store chain
Fairway Group Holdings - food retailer
Tops Holding II - supermarket operator
99 Cents Only Stores - discount retailer
TOMS Shoes - footwear company
David's Bridal - wedding dresses and formalwear seller
Evergreen AcqCo 1 LP - parent of thrift chain Savers
Charming Charlie - women's jewelry and accessories
Vince LLC - clothing retailer
Calceus Acquisition - owner of Cole Haan footwear firm
Charlotte Russe - women's clothing
Neiman Marcus Group - luxury department store
Sears Holdings - owner of Sears and Kmart.
Indra Holdings - holding company owner of Totes Isotoner
Velocity Pooling Vehicle - does business as MAG, Motorsport Aftermarket Group
Chinos Intermediate Holdings - parent of J. Crew Group
Everest Holdings - manages Eddie Bauer brand
Nine West Holdings - clothing, shoes and accessories
Claire's Stores - accessories and jewelry
True Religion Apparel - men's and women's clothing
Gymboree - children's apparel
On November 8, 2016, the American people said, "Trump the Establishment!"
Now read the book that explains how and why the press missed this historic election.
It is available on Kindle, and in paperback.
And then read the original, "Trump the Press," which chronicled and mocked how the media missed Trump's nomination.
It is available on Kindle, and in paperback
Autographed copies of both books are available by writing me at DonSurber@GMail.com
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The third trend you missed is that these "management" companies that buy good companies using huge debt are vultures that are killing Main Street. Their MO is to 1.buy a company with good credit and assets, 2. Sell all the assets you can and pump the companies full of more debt. 3. Extract all the liquid assets possible and charge huge management fees in the process. 4. Blame the "bad economy" for the company's failure. Every time you see these formerly good companies fail there is usually one of these leveraged buyouts involved.
ReplyDeleteT says:
DeleteIt's called "sucking the equity out of a business" and it's done all the time by predatory landlords as well. Buy a house on the cheap (e.g., back taxes). Rent it. Put no money into its upkeep or repair. Let the property deteriorate as you continue drawing whatever rent you can and the quality of the tenants declines. Eventually abandon the useless and dilapidated property and let it become a problem for the local municipality and the long-term residents of the neighborhood.
Do this three times and watch what happens to the quality of a once nice neighborhood.
There's a theory about that says when an organization has peaked and is going into decline it is almost natural for it to become "converged". In other words SJWs are like scavengers that have an instinct for recognizing a dying animal/organization and feed on it while it dies. They are never there while something is being built, they only show up when it is time for it to be torn down. When you see a liberal on your church board or in the eldership it is time to leave. Same thing for business. They can smell the blood in the water that you can't. A converse of the canary in the mine. They come to life when things are going south, rather than dying.
ReplyDeleteThat makes sense.
DeleteSJWs and their parent politics and institutions are parasitic in behaviour and theoretical foundation. They claim virtue while showing up to feed on the flesh of the corpse often before it is dead. Every disaster, failing organization, etc now sees this activity. Globalism is parasitic.
DeleteElliott
I don't patronize any of those firms listed by Zero Hedge. I don't live near a big city. Last/only time I can recall being in NM was in Dallas in '65 or '66. Bummer for them.
ReplyDeleteAs long as Dollar General is around, I'm cool.
DeleteYou know what? Think of all those conservative rich white women who were offended by what happened to Ivanka......Hmmmm....that money is never coming back, is it? Ever wonder just how much money leftists actually spend? Think about it.
DeleteLonestarwacko, about $582 a month or what ever is on that EBT card.
DeleteExhibit B: My wife reported that the room erupted in cheers yesterday when their craft group's president announced that Hobby Lobby was moving into the space vacated by Penney's at the Martinsburg Mall. JCP went south under the "leadership" of a liberal SJW CEO. Hobby Lobby fought the Gubment and won. Now Mr. T is Da Man. What a trifecta!
ReplyDeleteNordstrom is also having troubles.
ReplyDeleteCoinkydink?
The only entry on that list that affects me- is the 99c Stores. I've never seen any political ads from them, but here in SoCal they've been getting better for shopping as the idiots in Sacramento ruin the economy. (In other words, we're all getting so poor that shopping at the 99c Store is appealing.)
ReplyDeleteRight now I do most of my salad & vegetable shopping at 99c, it's pretty much the same stuff as at Ralphs but a whole lot less $$. So I hope they don't go under, but if they're supporting the SJWs I'm more than happy that they do!
You'd think a mob called "Racked" would be on Ivanka's side.
ReplyDeleteI was a regular Nordstrom shopper until the store dropped Ivanka's clothing line. I decided to treat myself to a shopping spree and bought 11 pieces from her collection -- all purchased at other retailers. Then I wrote Blake Nordstrom an email to tell him how much money I'd just spent, not a penny of it at his family's department store. Also mentioned that I would never shop at his store again, due to his caving to #grabyourwallet. Told him I was grabbing my wallet and running as far from Nordstrom as I could.
ReplyDeleteI don't have a Starbucks driving past Target on my way not going to Nordstrom.
ReplyDeleteYou do know Trump is the establishment, right? smh
ReplyDelete