Luxury department store operator Saks Global announced Friday it will shutter an additional 15 retail locations as the company works to streamline operations following its bankruptcy filing earlier this year.
The retailer revealed it will close 12 Saks Fifth Avenue locations and three Neiman Marcus stores as it concentrates resources on more profitable, upscale shopping destinations. Company officials said this latest round of closures largely completes their process of eliminating underperforming retail outlets.
The restructuring efforts come after the luxury chain faced significant financial challenges last year, including missed payments to suppliers and inventory shortages when numerous brands halted product shipments. However, Saks Global reported improved conditions recently, with over 500 brands now shipping merchandise again and nearly $1.3 billion in retail receipts being released.
The company’s two prestigious Bergdorf Goodman locations in New York will remain unaffected by these closures. Additionally, officials continue negotiations with various landlords to determine the final count of operating stores.
In February, a federal bankruptcy judge granted final approval for Saks Global’s restructuring financing package, providing $1 billion in fresh capital for the company. This funding helped resolve payment disputes with high-end suppliers including Chanel, Dolce & Gabbana, and LVMH, as well as landlords and Amazon.
The luxury retailer entered bankruptcy proceedings with $3.4 billion in outstanding debt, approximately one year after a major business deal united Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus under single ownership in an attempt to create a dominant luxury retail empire.
Earlier closure phases already eliminated most Saks OFF Fifth outlet stores and the remaining Neiman Marcus Last Call discount locations.
