The latest round of closures brings Saks Global’s total planned department store reductions to 24 by spring, leaving the company with 13 Saks Fifth Avenue stores, 32 Neiman Marcus locations, and Bergdorf Goodman in New York City — a sharply smaller footprint than the combined chain carried when it filed for Chapter 11 in January.
Saks Global Inc. announced Friday it will close 12 more Saks Fifth Avenue stores and three additional Neiman Marcus locations as the luxury retailer trims its footprint during Chapter 11 bankruptcy restructuring. Among the stores set to close are sites in Chevy Chase, Maryland, Chicago, and San Antonio, Texas, with all locations remaining open through the end of May, a company spokesperson said.
The announcement follows a first round of closures the company disclosed last month, when it said it would shutter eight Saks Fifth Avenue stores and one Neiman Marcus location, with those stores expected to remain open through the end of April.
Combined, the two rounds bring Saks Global’s total planned department store closures to 24 by spring.
What remains
After the planned closures, Saks Global said it will operate 13 Saks Fifth Avenue stores — including its flagship on Manhattan’s Fifth Avenue — along with 32 Neiman Marcus locations and Bergdorf Goodman in New York City.
Supplier recovery
Alongside the store reductions, the company reported progress in stabilizing its supplier relationships. Saks Global said 500 brands have resumed shipping, releasing close to $1.3 billion in retail receipts. The company said that figure accounts for more than 80% of the inventory it expects to receive from February through April, and that momentum was expected to continue.
Saks Global also said it is in talks or has reached repayment agreements with about 175 suppliers.
Broader restructuring moves
The company has taken additional steps to reduce its operating footprint since filing for Chapter 11 in January. It said it would wind down 14 of its standalone Fifth Avenue Club personal styling suites, retaining three. The company also shuttered Horchow.com, a home goods retailer that Neiman Marcus acquired in the late 1980s; as of Feb. 19, shoppers have been redirected to the home category on NeimanMarcus.com.
Saks Global is also closing all but 12 of its Saks Off Fifth outlet locations. The company said those remaining stores will serve primarily as a selling channel for residual inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.