Saks Global plans to close 12 more Saks Fifth Avenue stores and three Neiman Marcus locations in what it says may be its last big round of slashes to its brick-and-mortar footprint as part of its bankruptcy.
The New York-based luxury retail conglomerate announced the 15 store closings Friday, saying they were on top of the retail locations it said last month were going dark last month. At that time, Saks Global said it would be shuttering eight Saks Fifth Avenues and one Neiman Marcus.
So altogether, 20 Saks Fifth Avenues and four Neiman Marcus stores are going to be closed. Saks Global is also shuttering most of its fleet of off-price Saks Off 5th stores, about 60 locations. As of now, only 13 Saks Fifth Avenue stores will be left.
With Friday's announcement, Saks Global said it "has largely completed the optimization of its footprint but continues to engage with landlords as it works to make final decisions on its go-forward network of stores."
Saks Global is in the middle of a Chapter 11 proceeding after filing for bankruptcy protection in January. The company was derailed by the debt it took on in December 2024 when it acquired the Neiman Marcus Group — including its namesake chain and Bergdorf Goodman — for $2.7 billion. Because of its financial straits, Saks Global was not paying vendors, or paying them late, and many of them stopped shipments. As part of its Chapter, 11 Saks Global vowed to optimize its store footprint by downsizing.
Saks Fifth Avenue and Neiman Marcus go-forward store footprint includes its best locations, according to Saks Global. There will be no changes to Bergdorf Goodman's operational footprint, the company said.
"This strategic optimization is part of our ongoing transformation and rooted in our long-term view of our business," Saks Global CEO Geoffroy van Raemdonck said in a statement.
"Our go-forward store portfolio will comprise the best performing and most desirable locations in markets with the highest concentration of luxury customers, enabling us to deepen loyalty and drive sustainable growth," he said. "With a refined footprint, we are creating a stronger platform for our brand partners and an even more compelling customer experience as we focus on investing in the luxury experience, sharpening the differentiation of our coveted banners and fully leveraging our prime owned and other retail locations."
The Saks Fifth Avenue stores closing are:
- Beachwood Place, Beachwood, Ohio.
- 5555 Wisconsin Ave., Chevy Chase, Maryland.
- 700 N. Michigan Ave., Chicago.
- 3333 Bristol St., South Coast Plaza, Costa Mesa, California.
- 3200 Las Vegas Blvd. S., Fashion Show Las Vegas, Las Vegas.
- The Gardens on El Paseo, Palm Desert, California.
- Triangle Town Center, Raleigh, North Carolina.
- North Star Mall, San Antonio.
- The Mall at University Town Center, Sarasota, Florida.
- Plaza Frontenac, St. Louis.
- Tysons Galleria, McLean, Virginia.
The Neiman Marcus stores closing are:
- Ala Moana Center, Honolulu.
- Westfield Topanga, Canyon Park, California.
- 2 E. Maple Ave., White Plains, New York.
There are areas where there is both a Saks Fifth Avenue and a Neiman Marcus. While select markets will be streamlined to include either a Saks Fifth Avenue or Neiman Marcus store "based on unique considerations for each location, including performance and customer preference," Saks Global said it "will continue to operate both banners in leading luxury destinations that represent a significant growth opportunity." The company added that it will further differentiate its retail banners "through distinct assortments and experiences."
Saks Global, with access to roughly $825 million of $1.75 billion in committed capital, said it's improved its liquidity position, enabling it to fund new orders with brand partners. The company said its inventory flow has accelerated as more than 500 brands resume shipping, releasing close to $1.3 billion in retail receipts, with momentum expected to continue. That accounts for over 80% of the inventory the company expects to receive from February through April, with momentum expected to continue.
Saks Global said it's reached or nearly reached agreements with more than 175 brands across all categories, including large maisons as well as smaller brands, and it is committed to having equally productive discussions with more brand partners.
Coupled with renewed discipline and focus on luxury customers as well as full-price selling, this has strengthened dialogue with brand partners and reinforced their confidence in the company's strategic direction, according to the company.