Saks Global to Close 15 Department Stores in Bankruptcy Restructuring
Saks Global Inc., the parent company of Saks Fifth Avenue and Neiman Marcus, is undergoing significant restructuring as part of its Chapter 11 bankruptcy proceedings. The company announced plans to close 15 department stores, a move aimed at streamlining operations and reducing debt.
Saks Global’s Closure Plan
On Friday, Saks Global revealed that it will shut down 12 Saks Fifth Avenue and three Neiman Marcus locations. These closures include stores in:
- Chevy Chase, Maryland
- Chicago, Illinois
- San Antonio, Texas
The targeted stores will remain open until the end of May. This comes in addition to the earlier announcement of closing eight Saks Fifth Avenue and one Neiman Marcus store, with plans to wind down by the end of April.
Future Store Count
Following this restructuring, the company will operate 13 Saks Fifth Avenue stores, including its flagship location on Manhattan’s Fifth Avenue. Additionally, it will have:
- 32 Neiman Marcus stores
- Bergdorf Goodman in New York City
Financial Overview and Supplier Negotiations
Saks Global reported that approximately 500 brands have resumed shipping operations. This has generated nearly $1.3 billion in retail receipts, representing over 80% of the anticipated inventory to be received from February through April. The company’s performance suggests positive momentum moving forward.
In a bid to navigate its financial challenges, Saks Global is also in discussions with about 175 suppliers to establish repayment arrangements. This is part of a broader effort to stabilize its business.
Additions to Restructuring Efforts
As part of its ongoing restructuring, Saks Global has decided to close down 14 standalone Fifth Avenue Club locations, retaining only three. Additionally, the company has shut down Horchow.com, the home goods retailer acquired by Neiman Marcus in the late 1980s. Customers have been redirected to the home category on NeimanMarcus.com since February 19.
Furthermore, Saks is reducing its Saks Off Fifth outlets to just 12 locations. The remaining stores will primarily function to sell off leftover inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.
Saks Global’s restructuring marks a pivotal moment in its operations as the company seeks to focus on its most viable business segments while managing its financial obligations.
