Icelandic Investor: Not Saving Saks After All

The head of an Icelandic retail conglomerate who expressed interest in purchasing Saks is unlikely to do so this year. A source close to the Icelandic retail mogul said that tight credit and Saks’ poor economic outlook have made the deal undesirable.

(The good news: Saks’ dismal economic forecast and decreasing interest among buyers will likely push the retailer’s shares down, making a buyout more feasible.)

NY Post: An Icelandic investor who has expressed interest in buying luxury retailer Saks is unlikely to pursue a bid this year, sources told The Post.

Jon Asgeir Johannesson – chairman of Baugur Group, a retail conglomerate based in Iceland – said last month he was “actively” interested in purchasing Saks, adding his firm has amassed a war chest for acquisitions following recent unit sales…

A source close to Johannesson said tight credit markets and a poor economic outlook have made the financing all but impossible at current prices.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.