Saks Fifth Avenue, the luxury department store, is being readied for sale, reports the New York Times. The company has thinned out its management ranks and is selling the remaining midprice stores in its stable.

The market is betting that the time is right for a sale becaause private equity funds are flush with cash and are looking for luxury businesses that produce stronger returns than the rest of their sector. Neiman-Marcus, for example, was sold for $5 billion last year.

Part of the change at the executive suite is the semi-retirement of CEO R. Brad Martin. He will become chairman and the new CEO is COO Stephen Sadove. He says the biggest issue is the low margins at Saks. Its has been operating on 3 percent while Neiman-Marcus has margins of over 9 percent.

Analysts say Saks could bring in as much as $2 billion.