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HSBC to acquire Neiman Marcus Private Label Credit Card Accounts
13 June 2005
HSBC North America’s Retail Services Division is to acquire the private label credit card accounts and related assets of The Neiman Marcus Group Inc., the US-based prestige retailer, and its subsidiary Bergdorf Goodman Inc.
Subject to regulatory approval, HSBC will pay the net asset value of the assets acquired, which is estimated to be approximately US$527 million, based on a final valuation of the credit card book and related assets. HSBC will also assume or repay approximately US$113 million of Neiman Marcus’ securitisation liabilities.
Under the agreement, Neiman Marcus will receive payments for a five year period for services to be provided to HSBC Retail Services based on performance of the credit programme. Neiman Marcus will continue to handle core customer service functions like new account processing, transaction authorisation, billing adjustments, collection services and customer enquiries.
HSBC and Neiman Marcus expect to close the transaction by 31 July 2005.
Joseph Hoff, chief executive officer of HSBC Retail Services, said: "There are few names in retailing as well respected as Neiman Marcus. Helping our partners grow through enhanced customer relationships is what drives us at HSBC, and we are looking forward to reinforcing and extending the Neiman Marcus and Bergdorf Goodman brands through every aspect of the private label card programme. Our marketing, database analytics and CRM expertise, combined with our investments in technology, allow us to support a positive customer experience across all the critical interactions that the Neiman Marcus Group has with its customers."
HSBC North America includes all of HSBC’s U.S. and Canadian businesses, including the former Household businesses, and has more than US$300 billion in assets. The company’s businesses in North America serve more than 60 million customers in five key areas: personal financial services, consumer finance, commercial banking, private banking and corporate investment banking and markets.
HSBC’s Retail Services business is a leading issuer of private label (merchant branded) credit cards in the United States. It provides customised credit card solutions for the world’s premier retailers and manufacturers and has more than 60 active merchant relationships, including Best Buy, Levitz Furniture and Saks Fifth Avenue. Financial products and services are offered under the HSBC, HFC and Beneficial brands.
Media enquiries to pressoffice@hsbc.com.
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