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Bankruptcy · Luxury · Retail · Store Closures
Saks Global, the parent company of luxury retailers Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, is undertaking significant store closures as part of its Chapter 11 bankruptcy restructuring.
The company announced the closure of eight Saks Fifth Avenue stores, including locations in Philadelphia, Columbus, Ohio, and Phoenix, reducing its total Saks Fifth Avenue footprint to 25 stores. Additionally, the Neiman Marcus Boston store will be shuttered, leaving 35 Neiman Marcus locations.
These initial closures target unprofitable businesses, aiming to pare down debt and streamline operations. Further actions include winding down 14 standalone Fifth Avenue Club personal styling suites and closing Horchow.com, with shoppers redirected to NeimanMarcus.com.
These moves follow earlier announcements to close most of its 70 Saks Off 5th locations, retaining only 12, and the complete closure of the five Last Call outlet stores. CEO Geoffroy van Raemdonck stated the goal is to reinforce the luxury brands through a seamless multichannel shopping experience.
The bankruptcy, driven by rising competition and substantial debt from the Neiman Marcus acquisition, has seen Saks Global secure $500 million of a $1.75 billion financial package to support suppliers.
