Saks Global, the owner of luxury retail chains like Saks Fifth Avenue and Neiman Marcus, has shut down over a dozen locations and laid off more than 1,200 employees across the U.S. following its bankruptcy filing earlier this year.
The New York-based firm initiated these job cuts recently, submitting a worker adjustment and retraining letter that detailed plans to close 15 stores—12 Saks Fifth Avenue locations and three Neiman Marcus stores. This closure process will take place between May 6 and May 31.
Earlier this year, Saks entered Chapter 11 bankruptcy protection and secured a $1 billion bankruptcy loan last month to support its restructuring efforts.
A spokesperson for Saks mentioned to the Post, “These decisions were made after careful consideration, and we are saddened to part ways with some talented colleagues.”
The spokesperson added, “We are grateful for their dedication and will assist them during this transition.”
The bankruptcy came with about $3.4 billion in debt, primarily following its acquisition of Neiman Marcus in 2024, as sales declined and paying suppliers became challenging.
The closures also target stores in cities like Chicago, Las Vegas, San Antonio, Texas, and Tysons, Virginia.
Post-closures, Saks Global will continue to operate 13 Saks Fifth Avenue and 32 Neiman Marcus stores across the country.
Interestingly, the restructuring does not touch the two Bergdorf Goodman locations in New York, which will stay operational.
In recent rounds of reductions, Saks has also indicated plans to shut down most Saks Off 5th stores and all remaining Neiman Marcus Last Call locations, although a few Off 5th stores might still remain open.
The company noted that there’s been an improvement in inventory flow, as over 500 brands resumed product shipments, unlocking nearly $1.3 billion in retail revenue.
Luxury retailers are experiencing pressure as industry growth slows and resale platforms flourish, with forecasts suggesting that the second-hand fashion market could expand three times faster than primary markets by 2027.
The layoffs come on the heels of complaints from Bergdorf Goodman employees, who claimed that the parent company was deducting significant amounts from their weekly paychecks. Reports indicated that almost 20 employees in a high-end Manhattan store faced unexpected pay cuts, with reductions sometimes reaching two-thirds of their salaries.
An email from management reviewed by the Post indicated they were examining the pay issues and “working to resolve it.”
A spokesperson clarified that there have been “no system errors related to payroll tax withholding or benefit deductions” since January 1.
They added, “It’s typical for net pay to vary at the start of the year because of factors like the annual reset of Social Security contributions, 401(k) limits, and benefit deductions.”
However, one employee, who requested anonymity due to fear of backlash, disagreed with this reasoning, stating, “There’s no way the government is taking away 75% of our earnings. People have bills, groceries, and transportation to worry about. Are you really saying someone is living on $400 a week?”
