NEIMAN’S STEAMIN’

Luxe chain in ‘hot and heavy’ talks with Saks

A mega-luxury merger that would pair Neiman Marcus with the company that owns Saks Fifth Avenue is in the works, sources told The Post.

Hudson’s Bay — the Canada-based retail empire that owns Saks as well as Lord & Taylor — is in “advanced talks” to buy Neiman Marcus from private equity firm Ares Management and the Canada Pension Plan Investment Board, one of the sources said.

While the source cautioned that “no deal has been signed,” Hudson’s Bay has already “done its due diligence” on a prospective acquisition of Neiman, which also owns the Bergdorf Goodman stores on Fifth Avenue.

“These are advanced talks,” the source told The Post. “Hot and heavy.”

Neiman and Saks, which have duked it out for decades in a battle to rule the US luxury market, would preserve their separate identities as retailers in any merger, insiders said.

Nevertheless, there have already been discussions for Saks President Marc Metrick to assume the duties of Neiman Marcus boss Karen Katz as part of a deal, sources said.

In a twist, Hudson’s Bay owner Richard Baker — a savvy real-estate magnate who recently was in discussions to buy Macy’s — is an- gling to gain control of Neiman without having to assume the Dallas-based luxury chain’s $5 billion debt load.

Specifically, Hudson’s Bay is looking to buy Neiman’s assets in a deal that wouldn’t trigger a change in control, leaving the debt with Neiman instead of on the buyer’s books, a source said.

Hudson’s Bay would only consider a deal that would “save” its credit portfolio and balance sheet while taking on Neiman Marcus, the source said.

One option for the Canadian retail giant would be to purchase a minority equity stake in Neiman — as much as 49.9 percent — while gaining effective control of the retailer, according to Jude Gorman of Reorg Covenants.

Neiman Marcus risks bankruptcy if its owners are un- able to reach a deal with Hudson’s Bay or another buyer, although there do not appear to be other bidders, sources said.

Ares Management and the Canadian Pension Plan appear to be hedging their bets by designating certain assets — three properties that Neiman owns in Texas and Virginia — as “unrestricted subsidiaries” under its credit facilities, a source said.

Removing those assets as collateral against Neiman’s debts is a “signal that its owners believe the company could file for bankruptcy,” a source added.

The merger talks come as Neiman announced Tuesday it is exploring strategic alternatives including a possible sale of the company as its swanky stores struggle with sluggish mall traffic and heightened competition.

“We are seeing our customers shop multiple stores and Web sites — not just ours,” Katz said during an earnings call Tuesday. “We continue to see fewer international shoppers in our stores in New York City, Miami, Las Vegas and Honolulu.”

For the second quarter ended Jan. 28, revenue was off 6.1 percent, to $1.4 billion, while same-store sales slumped 6.8 percent.

Ares and Canada Pension Plan bought Neiman for $6 billion in 2013.