Mytheresa is getting ready to go public in the United States.
According to people familiar with the subject, the German e-commerce startup wants to seek a valuation of $1 billion to $1.5 billion, which could fluctuate depending on holiday season success.
According to persons familiar with the situation, Mytheresa.com GmbH, a luxury online retailer specializing in women’s clothes, plans to list in the United States in early 2021.
According to the people, the fast-growing German e-commerce company is working with advisers on preparations for a possible initial public offering. They asked not to be identified since the information is confidential. It intends to seek a valuation of between $1 billion and $1.5 billion, though the figure could alter depending on how well the company performs over the important holiday season, according to the sources.
According to one of the persons, Mytheresa has gotten preliminary interest from publicly traded blank-check corporations known as special purpose acquisition companies.
The company, which is funded by Ares Management Corp. and the Canada Pension Plan Investment Board, is taking advantage of a surge in online sales while shoppers stay at home due to coronavirus lockdowns. Farfetch Ltd. shares have nearly doubled in value in US trading this year, boosted by a $1.1 billion investment from Alibaba Group Holding Ltd. and Richemont disclosed earlier this month.
According to figures provided by Bloomberg, internet companies have raised $18.3 billion in IPOs this year. According to the persons, no final decisions have been taken, and specifics such as the timing and valuation of Mytheresa’s IPO could change.
Mytheresa has its origins in a premium store in Munich that dates back more than 30 years. It began as a tiny e-commerce company in 2006 and has since expanded to employ more than 700 people.
According to its website, the company distributes over 250 brands to women, men, and children in over 140 countries, including Gucci, Prada, and Givenchy. Mytheresa is based in southern Germany, near Munich, the Bavarian capital.
In 2014, Mytheresa was purchased by Neiman Marcus, which was then owned by Ares and CPPIB. According to court documents, the purchase price was around $253 million, with extra payments connected to the company’s success following the acquisition. In 2018, Neiman transferred the internet division to its ultimate parent company, effectively putting Mytheresa out of reach of creditors.
Dallas-based After efforts to control the chain’s financial load unraveled and stores were forced to close during Covid-19, Neiman filed for Chapter 11 bankruptcy in May of this year.
A committee of unsecured creditors wanted a piece of Mytheresa in Neiman’s bankruptcy proceedings to make up for their losses. In exchange for a portion of Neiman’s internet business, the creditor group agreed to abandon their objections to the bankruptcy reorganization. Despite the bankruptcy, Ares and CPPIB retained a significant share in Mytheresa.
According to documents submitted as part of the bankruptcy proceedings, Neiman’s parent firm attempted to sell Mytheresa last year. Because the highest bid it got was $525 million, it decided to discontinue the marketing campaign in July 2019.