Saks Global Inc., the parent company of luxury retailers Saks Fifth Avenue and Neiman Marcus, announced plans to close an additional 15 department stores as part of its Chapter 11 bankruptcy restructuring. The closures are aimed at focusing on more profitable locations and trimming debt.
Key Takeaways
Saks Global Inc., parent company of Saks Fifth Avenue and Neiman Marcus, announced plans to close 15 more department stores as part of its bankruptcy restructuring. This follows earlier closures and aims to focus on more profitable locations.
- Saks Global will close 12 Saks Fifth Avenue stores and three Neiman Marcus stores by the end of May.
- The company has already closed eight Saks Fifth Avenue stores and one Neiman Marcus store last month, with those set to remain open until April.
- A total of 24 department stores will be closed by spring, leaving 13 Saks Fifth Avenue locations, including its flagship store on Manhattan’s Fifth Avenue.
- The company has resumed shipping from 500 brands, releasing close to $1.3 billion in retail receipts.
- Saks Global is also closing most of its Saks Off Fifth locations and wind down personal styling suites.
The company stated it will close 12 Saks Fifth Avenue stores and three Neiman Marcus stores by the end of May. Among the shuttered Saks stores are locations in Chevy Chase, Maryland; Chicago; San Antonio, Texas; Las Vegas; and Tysons Corner, Virginia. The closures follow an earlier announcement to shut down eight Saks Fifth Avenue stores and one Neiman Marcus store last month, which will remain open until the end of April.
With these planned closures, a total of 24 department stores will be shuttered by spring. This will leave the company with 13 Saks Fifth Avenue locations, including its flagship store on Manhattan’s Fifth Avenue, as well as 32 Neiman Marcus locations and two Bergdorf Goodman stores in New York City.
Saks Global has also reported that 500 brands have resumed shipping, releasing close to $1.3 billion in retail receipts. This accounts for more than 80% of the inventory expected from February through April. The company is also in talks or has reached repayment agreements with about 175 suppliers.
Since filing for Chapter 11 bankruptcy in January, Saks Global has been shrinking its business. Last month, it announced plans to wind down 14 standalone Fifth Avenue Club personal styling suites, keeping only three. The company also shuttered the home goods retailer Horchow.com and is closing all but 12 of its Saks Off Fifth locations.
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