The majority of Saks Fifth Avenue locations will shutter as the department store's parent company announced another round of closures related to its Chapter 11 bankruptcy restructuring and luxury refocus.
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Saks Global Inc. will close 12 more Saks Fifth Avenue stores and three more Neiman Marcus locations, it stated on Friday. These closures add to the eight Saks Fifth Avenue stores and one Neiman Marcus location it already announced it will close.
The closures will leave the company with 13 Saks Fifth Avenue stores, 32 Neiman Marcus locations and its Bergdorf Goodman in New York City, The Associated Press reported.
The closing list includes stores in Chevy Chase, Maryland, Chicago and San Antonio. The first round of stores will stay open through the end of April and the second round through the end of May.
“This strategic optimization is part of our ongoing transformation and rooted in our long-term view of our business,” Saks Global CEO Geoffroy van Raemdonck said in a statement.
A group of bondholders committed $1.75B of financing to keep stores running during the company's restructuring. Saks has access to about $875M of that, it stated. The capital allows Saks to fund new orders with brand partners while it focuses on luxury customers and full-price selling.
Saks Global filed for bankruptcy in mid-January, weighed down by debt following its $2.7B acquisition of Neiman Marcus in 2024. The Saks Global conglomerate took on $2B in debt and missed a $100M debt service bill in December.
Amazon, which invested $475M into Saks in 2024, objected to Saks’ bankruptcy plan, arguing that it combined debt from several entities with different financial circumstances.
By late January, Saks announced it would close nearly all of its Saks Off 5th discount stores and the five remaining Neiman Marcus Last Call outlets to refocus on its luxury offerings.
“Our go-forward store portfolio will comprise the best performing and most desirable locations in markets with the highest concentration of luxury customers, enabling us to deepen loyalty and drive sustainable growth,” van Raemdonck said in the Friday press release.
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