July 4 (Reuters) - Saks Fifth Avenue parent HBC will

acquire department-store chain Neiman Marcus in a $2.65-billion

deal, the companies said on Thursday, giving them stronger

negotiating power with vendors and greater ability to control

costs.

The deal comes with luxury retailers battling slowing demand

as high interest rates and inflation force customers to crimp

budgets, following a luxury retail boom after the pandemic.

HBC said it will establish Saks Global, a combined entity of

Saks Fifth Avenue, Neiman Marcus and other luxury retail and

real estate assets.

Neiman filed for bankruptcy protection in 2020 after the

pandemic forced the closing of Neiman and other stores across

the United States, crushing the company's revenues.

Neiman Marcus is known for selling designer dresses, shoes,

handbags and other luxury products, catering to wealthy

customers.

Reuters had reported on Wednesday that HBC agreed to buy

Neiman Marcus.

Marc Metrick, CEO of the e-commerce Saks business, will run

the combined company.

Saks Global as a combined entity will compete with

Nordstrom, Bloomingdale's and Macy's, which is reportedly in

talks to sell itself to Arkhouse Management and Brigade Capital

Management for about $6.9 billion.

HBC and Neiman said online retailer Amazon.com ( AMZN ) and

customer relationship management software provider Salesforce ( CRM )

will also be investors in Saks Global, providing

technology, logistics and assistance with the integration of

artificial intelligence.

Existing HBC investor Rhone Capital, a private-equity firm,

will be the lead investor in Saks Global.

HBC is financing the deal with funds raised from new and

existing shareholders and debt. Private-equity firm Apollo

Global Management is providing $1.15 billion in debt

financing.

The Saks owner has also secured $2 billion in debt financing

from a syndicate of Wall Street banks.

JPMorgan and Lazard served as the financial advisers to

Neiman Marcus Group in the deal.