Saks Global said Feb. 10 it will shut nine of its luxury department stores, including eight Saks Fifth Avenue locations and a Neiman Marcus store in Boston, as part of its restructuring following Chapter 11 bankruptcy.
The closures, which include Saks Fifth Avenue stores in Philadelphia, Columbus, Ohio, and Phoenix, are expected to be completed by the end of April. The restructuring will leave Saks Global with 25 Saks Fifth Avenue stores and 35 Neiman Marcus stores across the country.
The moves mark the first stage in what the company described as a broader realignment designed to concentrate on profitable locations and streamline operations.
“We are initiating a series of actions to reinforce Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman as the ultimate destinations for luxury with a seamless multichannel shopping experience,” chief executive officer of Saks Global Geoffroy van Raemdonck said.
The restructuring extends beyond the store network. Saks Global said it will wind down 14 standalone Fifth Avenue Club personal styling suites by Feb. 14, keeping only three in key markets. Those personal-shopping locations were originally established to reach luxury clients in cities without a Saks Fifth Avenue store. After Saks Global’s 2024 acquisition of Neiman Marcus Group, officials said the overlap between the two retail brands made some of those standalone suites redundant.
In addition, Saks Global will end operations of its home goods site, Horchow.com, which Neiman Marcus had acquired in the late 1980s. Beginning Feb. 19, shoppers will be redirected to the home category on NeimanMarcus.com. The company said that consolidation will “create meaningful efficiencies and enable closer integration across merchandising, marketing, and technology.”
Tuesday’s announcement follows the company’s Chapter 11 bankruptcy filing on Jan. 14. The retailer cited mounting competition and substantial debt stemming from its acquisition of Neiman Marcus just over a year ago. Saks Global secured about $500 million in financing from a larger $1.75 billion lending package to help stabilize operations and pay suppliers.
The company, which also owns the iconic Bergdorf Goodman, has said it remains committed to its core full-price luxury businesses. Van Raemdonck, who previously led Neiman Marcus Group, has been steering the company through multiple rounds of restructuring since taking the helm in January.
Van Raemdonck said the latest closures are intended to refocus the business on high-performing stores and digital growth, while strengthening relationships with luxury brands.
“By optimizing our operational footprint, we will be better positioned to deliver exceptional products, elevated experiences and highly personalized service across all channels, while simultaneously positioning our company to make investments that enable long-term growth and value creation,” he said in the company’s press release.