Saks Global Announces Additional Store Closures Amid Bankruptcy Restructuring
NEW YORK (AP) — Saks Global Inc., the parent company of Saks Fifth Avenue and Neiman Marcus, is accelerating its restructuring plan by closing additional stores as it navigates Chapter 11 bankruptcy proceedings. The company announced Friday it will close 15 more stores, building on previous closure announcements.
Store Closures and Impact
This latest round of closures includes 8 Saks Fifth Avenue locations and 1 Neiman Marcus store in Boston, as reported by the Associated Press. Previously, the company announced the closure of eight Saks Fifth Avenue stores and one Neiman Marcus location. The closures will leave Saks Global with 25 Saks Fifth Avenue stores, including its flagship on Fifth Avenue in Manhattan, and 32 Neiman Marcus locations. Bergdorf Goodman’s two stores will remain open.
The stores will remain open until the end of April. The shuttered Saks locations include sites in Philadelphia, Columbus, Ohio, and Phoenix.
Strategic Shifts and Business Adjustments
Saks Global is too streamlining other parts of its business. It is winding down 14 standalone Fifth Avenue Club personal styling suites, retaining only three. The company has shuttered Horchow.com, its home goods retailer acquired by Neiman Marcus in the late 1980s. Shoppers are now redirected to the home category on NeimanMarcus.com for those products, according to the AP.
The company is also reducing its Saks Off Fifth footprint, closing all but 12 locations. These remaining outlets will primarily serve as a channel for residual inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.
Financial Situation and Inventory
Saks Global filed for Chapter 11 bankruptcy protection in January after accumulating a $4.7 billion debt from its acquisition of Neiman Marcus, as detailed by Wikipedia. Despite the financial challenges, the company reports positive momentum in inventory replenishment. Approximately 500 brands have resumed shipping, releasing close to $1.3 billion in retail receipts, representing over 80% of the inventory expected between February and April.
The company is also actively working with its suppliers, with repayment agreements reached or in discussion with around 175 vendors.
Company Overview
Saks Global is a holding company encompassing luxury retailers Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, and Saks Off 5th, as well as real estate investments, according to the company website. It was formed in 2024 after the Hudson’s Bay Company acquired Neiman Marcus Group for $2.7 billion, as reported by Wikipedia.