Saks Global Continues Restructuring With Layoffs and Store Closures

Saks Global, the parent company of luxury retailers Saks Fifth Avenue and Neiman Marcus, is undergoing a significant restructuring process that includes substantial workforce reductions and store closures. The company has received approval for its bankruptcy disclosure statement, paving the way for creditors to vote on its reorganization plan, with an aim to emerge from bankruptcy this summer.

Corporate Downsizing and Workforce Reduction

As part of its strategic realignment, Saks Global is implementing another round of layoffs, primarily impacting its corporate staff. The company will reduce its corporate team by 16 percent, which translates to approximately 640 positions. This move represents about 4 percent of its total workforce, which stood at around 16,000 to 17,000 employees at the time of its bankruptcy filing. These cuts do not affect employees at retail stores, distribution centers, or other facilities.

A spokesperson for Saks Global stated, ‘Following the strategic actions we’ve taken to secure long-term financial stability, sharpen our focus on luxury and full-price selling, optimize our operational footprint, and exit non-core businesses, we are right-sizing our corporate organization to align with our go-forward strategy.’ The company emphasized that these changes will concentrate resources on critical capabilities to drive profitable and sustainable growth, expressing gratitude to the departing employees and commitment to supporting them through the transition.

This latest round of layoffs follows previous workforce reductions. In February 2025, Saks Global laid off 5 percent of its corporate staff, followed by an additional cut of 550 jobs two months later. A distribution center closure in Tennessee also resulted in the loss of approximately 500 jobs.

Store Closures and Reorganization Plan

The restructuring also involves the closure of over a dozen retail locations nationwide. Worker Adjustment and Retraining Notification (WARN) notices indicate plans to close 15 stores: 12 Saks Fifth Avenue locations and three Neiman Marcus branches. These closures are scheduled to occur between May 6 and May 31. Specific locations impacted include stores in Chicago, Las Vegas, San Antonio, Texas, and Tysons, Virginia.

Following these closures, Saks Global will operate 13 Saks Fifth Avenue stores and 32 Neiman Marcus locations across the country. The company is also planning to close most of its Saks Off 5th retail locations and all remaining Neiman Marcus Last Call outlet stores, though a small number of Off 5th stores are expected to remain open. The Bergdorf Goodman brand, including its two New York stores, remains unaffected by these closures.

Saks Global filed for Chapter 11 bankruptcy protection in January, citing challenges with vendor payments and debt from its 2024 acquisition of Neiman Marcus Group. The company entered bankruptcy with approximately $3.4 billion in debt. A crucial element of its recovery strategy includes securing sufficient liquidity. Saks Global aims to have nearly $700 million in liquidity upon exiting bankruptcy, with expectations for this figure to grow over time.

Financial Outlook and Future Strategy

The company has secured a $1 billion bankruptcy loan to maintain operations during its restructuring. Experts note that significant store closures and job cuts early in a Chapter 11 case are typical for large retailers, often serving to halt financial bleeding and conserve cash for the core business. The $1 billion debtor-in-possession financing is seen as a strong signal from lenders that they believe in a viable path forward for Saks Global.

Looking ahead, Saks Global has outlined a five-year business plan with ambitious goals. The company aims to generate $9 billion in total gross merchandise value by fiscal 2030 and achieve double-digit adjusted EBITDA by the same fiscal year. To drive top-line growth, Saks Global plans to reinforce its retail model, strengthen customer relationships, and enhance partnerships with brands. Recent strategic actions since January have included optimizing its operational footprint, sharpening its focus on luxury and full-price selling, and exiting non-core businesses.

Saks Global CEO Geoffroy van Raemdonck expressed confidence in the company's future, stating, ‘We are building a stronger, more focused company that is positioned to serve as the premier gateway to the U.S. luxury customer and be a stronger partner to our brand partners and other key stakeholders.’ He added, ‘The committed capital we have secured, along with the growing momentum across our business, sets the stage for a successful future.’

Vendor Confidence and Market Challenges

Maintaining vendor confidence is critical during a department store bankruptcy. The company has reported improved inventory flow, with over 500 brands resuming merchandise shipments, releasing nearly $1.3 billion in retail receipts. However, the luxury retail sector faces ongoing pressures from slowing industry growth and the rapid expansion of resale platforms, with the secondhand fashion market projected to grow significantly faster than the primary market through 2027.

In related news, Saks Global addressed recent claims of payroll discrepancies affecting employees at Bergdorf Goodman. The company stated that there were no systemic errors related to payroll tax withholdings or benefits deductions since January 1. A spokesperson explained that variations in net pay at the start of the calendar year are common due to routine factors such as annual resets to Social Security contributions, 401(k) limits, and benefit deductions.