The luxury retail company that owns Saks Fifth Avenue and Neiman Marcus announced Friday it will permanently close 15 additional department stores as it continues restructuring under Chapter 11 bankruptcy protection.
Saks Global Inc. revealed plans to shut down 12 additional Saks Fifth Avenue locations and three more Neiman Marcus stores. Among the affected Saks locations are stores in Chevy Chase, Maryland, Chicago, and San Antonio, Texas. According to a company representative, these stores will continue operating through the end of May.
This latest round of closures adds to the nine stores the company announced for closure last month – eight Saks Fifth Avenue locations and one Neiman Marcus store. Those initial closures are scheduled to wrap up by the end of April.
When all 24 planned store closures are complete this spring, the luxury retail giant will operate 13 Saks Fifth Avenue stores, including its iconic Manhattan Fifth Avenue flagship location, along with 32 Neiman Marcus stores and Bergdorf Goodman in New York City.
In positive news for the struggling retailer, Saks Global reported that 500 brand partners have resumed product shipments, unlocking approximately $1.3 billion in retail inventory. This represents over 80% of expected merchandise deliveries from February through April, with the company anticipating continued progress.
The retailer has also negotiated payment arrangements with roughly 175 suppliers or is currently in discussions to establish such agreements.
Saks Global has been downsizing operations since entering Chapter 11 bankruptcy protection in January. Last month, the company announced it would eliminate 14 of its standalone Fifth Avenue Club personal styling locations, retaining only three.
The company also discontinued Horchow.com, the home goods website that Neiman Marcus purchased in the late 1980s. Since February 19, customers visiting the site are automatically redirected to the home section of NeimanMarcus.com.
Additionally, Saks Global is shuttering most of its Saks Off Fifth outlet stores, keeping only 12 locations. These remaining outlets will primarily function as clearance centers for excess merchandise from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.
