BY Rosemary
The parent company of luxury retailers Saks Fifth Avenue and Neiman Marcus is preparing to close another wave of department stores as it attempts to stabilize its finances and reshape its business during a Chapter 11 bankruptcy restructuring.
Saks Global Inc. announced Friday that it will shut down 15 more locations across its two flagship chains, including 12 Saks Fifth Avenue stores and three Neiman Marcus stores. The closures are part of a broader effort by the company to streamline operations, reduce debt obligations and focus resources on its most profitable stores and online platforms.
According to the company, the Saks Fifth Avenue stores slated for closure include locations in Chevy Chase, Maryland, Chicago and San Antonio, Texas, among others. The affected stores are expected to remain open through the end of May before permanently shutting their doors.
The decision follows an earlier round of announced closures last month, when the company revealed plans to shut down eight Saks Fifth Avenue stores and one Neiman Marcus location. Those stores are expected to operate until the end of April before ceasing operations.
Once the latest round of closures is complete, Saks Global will have eliminated 24 department stores within a few months. After the restructuring steps are finished this spring, the company expects to operate 13 Saks Fifth Avenue department stores nationwide, including its iconic flagship location on Manhattan’s Fifth Avenue.
In addition, the company will continue operating 32 Neiman Marcus department stores along with Bergdorf Goodman, the historic luxury retailer located in New York City that remains one of the company’s most recognizable brands.
Executives say the store closures are part of a broader strategy aimed at preserving the company’s strongest assets while reducing operational costs during bankruptcy proceedings. By narrowing its footprint, Saks Global hopes to concentrate on high-performing locations and strengthen its digital retail operations.
Despite the financial challenges that led to its bankruptcy filing earlier this year, the company reported signs of progress in stabilizing its supply chain and vendor relationships. Saks Global said approximately 500 brands that supply merchandise to its stores have resumed shipping products following disruptions that occurred after the bankruptcy filing.
The resumed shipments represent nearly $1.3 billion in retail inventory receipts, accounting for more than 80 percent of the merchandise the company expects to receive between February and April. Company officials said they anticipate continued momentum as additional vendors restore normal business operations with the retailer.
The company has also been working to repair relationships with suppliers whose payments were affected by the bankruptcy proceedings. Saks Global said it has either reached repayment agreements or entered into active negotiations with around 175 vendors as it works through outstanding obligations.
Many suppliers initially paused shipments earlier in the year after the retailer filed for bankruptcy protection in January, a move that created uncertainty about whether vendors would receive payment for goods delivered to stores and warehouses.
Since then, the company has sought to reassure brands that it intends to continue operating its core retail businesses and maintain partnerships with key fashion labels and designers.
The store closures represent just one part of a sweeping restructuring plan that has significantly reshaped Saks Global’s operations over the past several months.
Earlier in the bankruptcy process, the company announced it would wind down most of its Fifth Avenue Club personal styling suites. These locations offer appointment-based luxury shopping experiences where stylists assist customers with curated wardrobe selections.
Out of 17 standalone Fifth Avenue Club locations previously in operation, the company said it will close 14 while keeping only three open. Executives indicated that concentrating these services in fewer locations would help reduce costs while still maintaining the high-end service experience for customers in key markets.
The restructuring has also affected other parts of the company’s portfolio. Saks Global confirmed it has shut down Horchow.com, an online home furnishings retailer that had been part of the Neiman Marcus brand family for decades.
Horchow was originally acquired by Neiman Marcus in the late 1980s and became known for selling upscale furniture, décor and home accessories. As part of the latest restructuring, the company decided to discontinue the standalone website.
Since February 19, customers attempting to access Horchow.com have been redirected to the home goods section of NeimanMarcus.com, where similar merchandise is now being sold under the broader Neiman Marcus brand.
Another major change involves the company’s Saks Off Fifth outlet stores, which traditionally sold discounted merchandise from luxury brands.
Saks Global announced that it will close most of those locations as part of its bankruptcy plan, leaving only 12 outlet stores operating nationwide. The remaining outlets will primarily serve as a distribution channel for excess or unsold inventory from Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.
By consolidating its outlet operations, the company hopes to create a more efficient system for clearing leftover merchandise while reducing the costs associated with maintaining a large network of discount stores.
Retail analysts say the sweeping changes highlight the difficult environment facing traditional department store chains, particularly those focused on brick-and-mortar locations.
Luxury retailers have faced increasing competition from online shopping platforms, direct-to-consumer brands and shifting consumer habits. At the same time, many traditional department store operators have struggled with rising operating costs and changing customer expectations.
Saks Global’s restructuring effort is aimed at ensuring that its most valuable brands survive the financial turmoil and remain competitive in the evolving luxury retail market.
The company’s remaining stores — particularly flagship locations in major cities — are expected to play a central role in its future strategy, serving as both high-profile retail destinations and hubs for luxury shopping experiences.
For now, the closures scheduled through April and May represent a significant contraction of the company’s physical retail footprint. But executives say the moves are intended to position Saks Global for long-term stability once it emerges from bankruptcy protection.