Luxe department store operator Saks Global plans to close nine more stores as part of its Chapter 11 restructuring, with most of the closures affecting the Saks Fifth Avenue banner.
In a court filing dated February 10, the luxury retail group said it intends to shutter eight Saks Fifth Avenue locations and one Neiman Marcus store, subject to approval at a US Bankruptcy Court hearing scheduled for Friday.
The latest round of closures includes Saks Fifth Avenue stores at:
- The Summit in Birmingham, Alabama.
- Polaris Fashion Place in Columbus, Ohio.
- American Dream in East Rutherford, New Jersey.
- Shops at Canal Place in New Orleans.
- Bala Plaza outside Philadelphia.
- Biltmore Fashion Park in Phoenix, Arizona.
- Stony Point Fashion Park in Richmond, Virginia.
- Utica Square in Tulsa, Oklahoma.
The company will also shut its Neiman Marcus store in Boston.
Saks said the decision was driven by store performance and lease economics, as the group hones on its most profitable locations.
“By optimising our operational footprint, we will be better positioned to deliver exceptional products, elevated experiences and highly personalised service across all channels, while simultaneously positioning our company to make investments that enable long-term growth and value creation,” said CEO Geoffroy van Raemdonck.
The move also follows Saks’ decision last month to scale back most of its off-price operations as it refocuses on luxury retail.
Following the closures, Saks Global will operate 25 Saks Fifth Avenue stores and 35 Neiman Marcus locations. Its two Bergdorf Goodman stores in New York City will remain unaffected, as will the downtown Dallas Neiman Marcus store.
Chief restructuring officer Mark Weinstein said overlapping locations across the combined portfolio had weighed on performance.
Around 40 per cent of Saks and Neiman Marcus stores are located near one another, in some cases serving as anchors in the same shopping centers.
“Given the breadth of luxury retail chains that make up the Global Debtors’ brand portfolio, the stores face competition not only from other luxury retailers and e-commerce experiences, but also, in certain markets, from one another,” Weinstein said.
He added that Saks Global will continue to review its store fleet and may seek court approval to close additional locations as the restructuring progresses.
