Saks Fifth Avenue and Neiman Marcus Announce Store Closures

The parent companies of Saks Fifth Avenue and Neiman Marcus have revealed plans to shut down eight Saks Fifth Avenue locations, along with the Neiman Marcus store in Boston. This decision is part of their effort to concentrate on more profitable ventures and manage debt during their Chapter 11 bankruptcy reorganization.

The closures will affect various locations including Philadelphia, Columbus, Ohio, and Phoenix, which leaves Saks Global with a total of 25 Saks Fifth Avenue stores and 35 Neiman Marcus stores. They will still operate two Bergdorf Goodman locations.

According to the companies, the affected stores are expected to remain open until the end of April.

Additionally, Saks Global stated that they would conclude their operations with 14 personal styling suites in the Fifth Avenue Club. However, they plan to keep three sites operational on Saturdays. Furthermore, Neiman Marcus intends to shut down its Horchow.com homepage, redirecting shoppers to the home section on NeimanMarcus.com, where all previous products from Horchow will be available.

This initiative is identified as the first stage of downsizing for Neiman Marcus and Saks Fifth Avenue, with the targeted stores being a minor part of their overall business that hasn’t been profitable.

“We’re taking steps to reinforce Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman as the premier luxury shopping destinations with a smooth multichannel experience,” stated Saks Global CEO Geoffroy van Raemdonk.

This announcement follows last month’s decision to close most of Saks Off Fifth stores, as Saks Global operates 70 of these and aims to cut down to just 12. The remaining outlets will mostly serve to clear out inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.

Just last month, the company also indicated the closure of the last five Last Call outlet stores, which were discount channels for Neiman Marcus.

Saks Global filed for Chapter 11 protection on January 14, faced with rising competition and substantial debt. They had acquired Neiman Marcus exactly one year prior to this bankruptcy filing.

They secured about $500 million as part of a larger $1.75 billion financing package, which aims to help cover their supplier costs, as many retailers are grappling with unpaid bills and need to ensure their stores remain stocked.