(14 June 2005 – USA) HSBC’s North American retail services division has inked a deal with US retailer Neiman Marcus to purchase its private label credit card accounts and related assets of its subsidiary Bergdorf Goodman.The deal will see HSBC pay US$527 million for the businesses and assume US$113 million of Neiman Marcus’ liabilities.
HSBC said Neiman Marcus, which operates in the prestigious retail market, will receive payments for five years for the services it will provide the bank’s retail business. Payments will be based on the performance of the credit program.
The retailer will continue to handle core customer transaction operations, such as new account processing, billing, and transaction authorisation. It will also handle customer enquiries.
The deal between HSBC and Neiman Marcus is set to be finalised by the end of July.