BEIRUT (AP) — A judge at Lebanon's military court on Tuesday charged the gunman who opened fire at the U.S. embassy near Beirut with being affiliated to the militant Islamic State group, security and judicial officials said.
Lebanese soldiers shot and arrested the gunman in early June, later identified as Kaiss Farraj from Syria, after a shootout that lasted almost 30 minutes and injured an embassy security guard.
The Islamic State group has not claimed responsibility for the attack, nor has any other group.
The attack took place as tensions simmered in the tiny Mediterranean country, where fighting between Hezbollah militants and Israeli troops has displaced thousands along the border, following years of political deadlock and economic hardship.
Lebanese media published photos that appear to show a bloodied attacker wearing a black vest with the words “Islamic State” written in Arabic and the English initials “I” and “S.”
Judicial and security officials familiar with the investigation previously told The Associated Press that Farraj initially appeared to be a lone wolf and not linked to any extremist group. The Lebanese Army soon after the shootout raided the eastern Lebanese towns of Majdal Anjar and nearby Suweiri, where it arrested three relatives of the suspect and two other people believed to be associated with him.
The two officials added that Government Commissioner to the Military Court Judge Fadi Akiki also charged two others who sold weapons to the gunman with selling unlicensed firearms. They spoke on condition of anonymity in line with regulations.
The officials said that Farraj, who was shot three times in the shootout, is in poor health and remains unconscious.
In 1983, a deadly bombing attack on the U.S. Embassy in Beirut killed 63 people. U.S. officials blame the attack on the Lebanese militant group Hezbollah.
Following that attack, the embassy was moved from central Beirut to the Christian suburb of Aukar, north of the capital. Another bomb attack struck the new location on Sept. 20, 1984.
In September 2023, Lebanese security forces detained a Lebanese man who opened fire outside the U.S. Embassy. There were no casualties in that attack.
In October 2023, hundreds of protesters clashed with Lebanese security forces in demonstrations near the U.S. Embassy in support of Gaza’s people and the militant group Hamas in its war with Israel.
FILE - A general view of a part of the U.S. Embassy compound in Aukar, a northern suburb of Beirut, Lebanon, June 5, 2024. On Tuesday, July 2, 2024, a judge at Lebanon's military court charged the gunmen who opened fire at the U.S. embassy near Beirut with being affiliated to the militant Islamic State group. (AP Photo/Bilal Hussein, File)
FILE - Lebanese special forces sit in their vehicle as they patrol on a road that leads to the U.S. Embassy in Aukar, a northern suburb of Beirut, Lebanon, June 5, 2024. On Tuesday, July 2, a judge at Lebanon's military court charged the gunmen who opened fire at the U.S. embassy near Beirut with being affiliated to the militant Islamic State group. (AP Photo/Bilal Hussein, File)
NEW YORK (AP) — The parent company of Saks Fifth Avenue has signed a deal to buy upscale rival Neiman Marcus Group, which owns Neiman Marcus and Bergdorf Goodman stores, for $2.65 billion, with online behemoth Amazon holding a minority stake.
The new entity will be called Saks Global, creating a luxury powerhouse at a time when the arena has become increasingly fragmented with different players, from online marketplaces that sell luxury goods to upscale fashion and accessories brands opening up their own stores.
The new organization will comprise the Saks Fifth Avenue and Saks OFF 5TH brands, Neiman Marcus and Bergdorf Goodman, as well as the real estate assets of Neiman Marcus Group and HBC, a holding company that purchased Saks in 2013.
The stores will continue to operate under their own brand names.
HBC has secured $1.15 billion in financing from investment funds and accounts managed by affiliates of Apollo, and a $2 billion fully committed revolving asset based loan facility from Bank of America, which is the lead underwriter, Citigroup, Morgan Stanley, RBC Capital Markets, and Wells Fargo.
The deal, announced Thursday, comes after the two department store chains had been negotiating a deal for about a year. But the twist is Amazon’s minority stake, which adds “a bit of spice” to an otherwise anticipated pact, according to Neil Saunders, managing director of GlobalData, a research firm. Amazon will be working with Saks Global to offer its expertise in logistics and personalization technology. Salesforce, a cloud-based software powerhouse, will also become an investor at closing.
The Wall Street Journal first reported the impending deal Wednesday.
“For years, many in the industry have anticipated this transaction and the benefits it would drive for customers, partners and employees," said Richard Baker, HBC executive chairman and CEO in a statement. “This is an exciting time in luxury retail, with technological advancements creating new opportunities to redefine the customer experience, and we look forward to unlocking significant value for our customers, brand partners and employees."
Marc Metrick, who is CEO of Saks' e-commerce business, will become CEO of Saks Global. He told The Associated Press on Thursday during a phone interview that consumers are increasingly demanding more access to designer product, easier ways to shop and more personalized experiences.
“This type of combination was the next move to make in order to put Saks, Neiman Marcus and Bergdorf Goodman where they need to be for the consumer, ” he said.
Both Saks and Neiman Marcus have struggled as shoppers have been pulling back on buying high-end goods and shifting their spending toward experiences, like travel and upscale restaurants. The two iconic luxury purveyors have also faced stiffer competition from luxury brands, which are increasingly opening their own stores.
The deal should help reduce operating costs and create more negotiating power with vendors. The new entity will also give shoppers better access to more designers, particularly up-and-coming ones as it will have more financial flexibility. Shoppers will also see their experiences more personalized through improved use of artificial intelligence, Metrick said.
Saks Fifth Avenue currently operates 39 stores in the U.S., including its Manhattan flagship. In early 2021, Saks spun off its website into a separate company, with the hopes of expanding that business at a time when more people were shopping online.
Neiman Marcus filed for bankruptcy protection in May 2020 during the first months of the coronavirus pandemic but emerged in September of that year. Like many of its peers, the privately held department store chain was forced to temporarily close its stores for several months.
Meanwhile, other department stores are under pressure to keep increasing sales.
Storied Lord & Taylor announced in late August 2020 it was closing all its stores after filing for bankruptcy earlier that month. It's operating online. Macy’s announced in February of this year that it will close 150 unproductive namesake stores over the next three years including 50 by year-end.
Consumers have proven resilient and willing to shop even after a bout of inflation, though behaviors have shifted, with some Americans trading down to lower-priced goods.
A deal between the two luxury retailers does not resolve all the issues, especially when high-end shoppers are looking to buy luxury goods online or at luxury brands' own stores, Saunders said.
“As a larger entity, negotiating power will be a little better with the brands, but even a combined chain would not match the heft and power of the global luxury conglomerates, which would still hold most of the cards,” Saunders said. “As such, there is a risk that the deal might end up creating an even bigger headache for Saks.”
Saunders noted that Amazon's stake in the business makes sense, as it has ambitions to play more heavily in the luxury arena. Saunders said Amazon could use its ability to streamline logistics and e-commerce and create an advantage for the new entity in a market where online shopping has become more important to shoppers — especially younger ones, which both chains need to do more to attract, he said.
Saks Global will also include HBC’s U.S. real estate assets and Neiman Marcus Group’s real estate assets, creating a $7 billion portfolio of retail real estate assets in top-tier luxury shopping destinations. Ian Putnam, currently president and CEO of HBC Properties and Investments, will become CEO of Saks Global Properties and Investments, which will manage the company’s portfolio of assets.
Both Metrick and Putnam will report to Baker, who will serve as executive chairman of Saks Global.
FILE - Shoppers walk into the Neiman Marcus retail department store at NorthPark shopping center in Dallas, March 30, 2023. The parent company of Saks Fifth Avenue has signed a deal to buy upscale rival Neiman Marcus for $2.65 billion. The buyout was announced Thursday, July 4, 2024, after months of rumors that the department store chains had been negotiating a deal. (AP Photo/LM Otero, File)
FILE — A Saks & Company doorman opens the 50th Street store entrance for customers, in New York, May 21, 1996. The parent company of Saks Fifth Avenue has signed a deal to buy upscale rival Neiman Marcus for $2.65 billion. The buyout was announced Thursday, July 4, 2024, after months of rumors that the department store chains had been negotiating a deal. (AP Photo/Richard Drew, File)
A Neiman Marcus sign is shown in San Francisco, Sunday, March 17, 2024. The parent company of Saks Fifth Avenue has signed a deal, Thursday, July 4, 2024, to buy upscale rival Neiman Marcus for $2.65 billion.(AP Photo/Jeff Chiu)
