DALLAS — Neiman Marcus Group and HSBC, which owns the luxury chain's private label credit card accounts, are battling in court over HSBC's efforts to increase card charges and interest rates.
The retailer filed a breach of contract suit last month in Dallas County District Court and won a temporary restraining order to prevent HSBC Bank Nevada and HSBC Private Label Corp. from canceling 192,000 accounts that are said to represent potential sales of $500 million in the next two years and from refusing to open new accounts, as well as changing the card terms.
HSBC bought the credit card accounts from Neiman Marcus Group for $640 million in June 2005 under a five-year contract that has provisions for being extended. As part of the deal, Neiman Marcus and Bergdorf Goodman stores agreed to accept only American Express and its private label cards, which number more than 1.9 million.
The suit alleged that last year HSBC said it wanted to change credit card terms because it stood to lose more than $8.5 million over a three-year period. The lawsuit did not specify the reasons for the losses, but stated: "In short, HSBC felt that it made a bad deal in buying the credit card accounts."
In September, HSBC proposed increasing charges and interest in order to reap $14.5 million more revenue over the three years, according to the suit.
Neiman's rejected the plan and suggested an alternate restructuring in December. HSBC refused the offer in January and threatened to implement the changes and credit card cancellations on or about Feb. 15, the suit said. The retailer depends on private label credit card transactions for more than half of all sales, which totaled $4.39 billion last year.
Cancellation of the cards would cause "incalculable damage" to Neiman's reputation and customer goodwill, the suit said.
Both Neiman Marcus and HSBC declined to comment on the litigation, spokeswomen said.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)