Saks Global to Close 15 More Stores Amid Bankruptcy Restructuring

Saks Global Inc., the parent company of luxury retailers Saks Fifth Avenue and Neiman Marcus, is set to close an additional 15 department stores as part of its ongoing Chapter 11 bankruptcy restructuring. The move is driven by a strategy to focus on its most profitable operations and reduce overall debt.

Expanding Store Reductions

The company announced Friday that it will shutter 12 Saks Fifth Avenue locations and three Neiman Marcus stores. Among the affected Saks stores are those in Chevy Chase, Maryland, Chicago, and San Antonio, Texas. These stores are expected to remain open to customers until the end of May. This latest round of closures follows an earlier announcement last month, which detailed the planned closure of eight Saks Fifth Avenue stores and one Neiman Marcus store. Those stores are anticipated to cease operations by the end of April.

Streamlined Store Portfolio

By the end of spring, Saks Global aims to have closed a total of 24 department stores. This significant reduction will leave the company with 13 Saks Fifth Avenue stores, including its iconic flagship on Fifth Avenue in New York City. The Neiman Marcus brand will operate 32 locations, and Bergdorf Goodman in New York City will remain part of the portfolio.

Supplier Relations and Inventory

In positive developments for its supply chain, Saks Global reported that approximately 500 brands have resumed shipping products to the company. This has resulted in the release of nearly $1.3 billion in retail receipts, representing more than 80% of the inventory expected between February and April. The company anticipates this positive momentum to continue. Furthermore, Saks Global is actively engaged in discussions or has already secured repayment agreements with around 175 suppliers.

Other Business Adjustments

Since filing for Chapter 11 bankruptcy in January, Saks Global has been implementing a series of business adjustments. Last month, the company revealed plans to wind down 14 of its standalone Fifth Avenue Club personal styling suites, retaining only three. Additionally, the home goods retailer Horchow.com, acquired by Neiman Marcus in the late 1980s, has been shuttered, with shoppers now directed to the home category on NeimanMarcus.com as of February 19.

Saks Off Fifth Strategy

The company is also consolidating its Saks Off Fifth outlet stores, closing down all but 12 locations. These remaining outlets will primarily function as a channel for selling residual inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, further aligning the company's strategy with its core luxury offerings.