According to sources close to the matter at hand, online luxury fashion retailer MyTheresa plans on taking advantage of the robust equity market by listing on the New York Stock Exchange.
MyTheresa’s owner, Neiman Marcus, is working with Morgan Stanley on the planned listing, which could be as early as April, said sources.
Both, Morgan Stanley and buyout fund Ares, which owns Neiman Marcus, declined to comment.
MyTheresa was not available for comment.
According to one of the sources, MyTheresa, which sells clothes from some of the world’s most coveted fashion brands including Burberry, Prada, Dolce&Gabbana, and Gucci, may be valued at around $500 million.
MyTheresa’s peers, including Asos, Zalando, and Global Fashion are already listed in Europe. MyTheresa though prefers a listing in New York, like online fashion retailers The RealReal and Farfetch.
While The RealReal and Farfetch had successful market debuts, both have struggled, with their stock trading below their initial public offering prices.
MyTheresa’s IPO would be the latest example of a private equity firm spinning out a better-performing retail asset from its struggling parent company.
Such carve-outs have been contentious with some creditors of the parent companies.
Incidentally, both Neiman Marcus and Ares face a lawsuit in New York state Supreme Court over a debt restructuring involving MyTheresa; according to creditors, this robbed them of the value of the online retailer.
In 1987, fashion retailers Susanne and Christoph Botschen opened a store in Munich called Theresa, which continues to exist even today. In 2006, they launched their online presence – MyTheresa. Neiman Marcus bought the business in 2014.
In April 2019, Neiman Marcus had said it was exploring strategic alternatives in order to address MyTheresa’s high debt levels.
Since 2013, the Canada Pension Plan Investment Board and Ares have owned Neiman Marcus.
According to a filing by Neiman Marcus, for the nine months ended March 31, 2019, MyTheresa had posted operative earnings before interest, tax, depreciation and amortization of 15.2 million euros on sales of 272 million euros.
According to a regulatory filing in Germany, MyTheresa posted a net profit of 21 million euros on sales of 370 million euros in fiscal 2018/19.