Saks Continues Store Closures Amid Ongoing Bankruptcy
Saks Global, the parent company of Saks Fifth Avenue and Neiman Marcus, is moving forward with a significant restructuring as it navigates bankruptcy. The company announced closures of multiple retail locations as part of its effort to stabilize following its Chapter 11 filing.
Saks Store Closures Amid Bankruptcy Challenges
On Tuesday, Saks Global revealed plans to shut down eight Saks Fifth Avenue stores and one Neiman Marcus location. This decision affects locations across several states:
- Alabama
- Ohio
- New Jersey
- Louisiana
- Pennsylvania
- Arizona
- Virginia
- Oklahoma
The closures are set to take place in the spring. In addition to these retail stores, Saks will also close 14 of its Fifth Avenue Club personal shopping service locations, leaving just two operational.
Transitioning Business Focus
Saks Global is also making adjustments to its online presence. The company plans to close Horchow.com and transition its luxury designer home furnishings to NeimanMarcus.com, effective February 19. Despite the challenges, Saks has stated that no changes will be made to its Bergdorf Goodman stores.
Financial Difficulties and Operational Cuts
Having entered Chapter 11 bankruptcy on January 14, Saks Global faces financial difficulties with over $2.5 billion in debt. This heavy debt burden stems from the acquisition of Neiman Marcus in 2024. Recently, the company missed some debt payments, raising concerns about its financial future.
As part of its optimization process, Saks is also downsizing its off-price division, Saks OFF 5TH. On February 2, 23 locations closed, and the company plans to reduce the number of operational off-price locations to just 12. Additionally, all remaining locations of Neiman Marcus’ Last Call off-brand entity will close, totaling 57 store closures.
Future Outlook
Saks Global’s CEO, Geoffroy van Raemdonck, emphasized that optimizing their operational footprint is crucial. These steps are intended to enhance product delivery, improve customer experiences, and enable investments for long-term growth. The changes reflect the company’s commitment to focusing on its luxury offerings while navigating its ongoing bankruptcy situation.
