Saks Global is closing an additional 15 department stores as part of its ongoing Chapter 11 restructuring plans.
The closures will include 12 Saks Fifth Avenue stores in Ohio, Maryland, Illinois, California, Nevada, New York, North Carolina, Texas, Florida, Missouri, and Virginia, as well as three Neiman Marcus locations in Hawaii, California, and New York.
This builds on an initial round of closures announced on February 10, which affected eight Saks Fifth Avenue locations and one Neiman Marcus store. There are no changes to the Bergdorf Goodman operational footprint.
“This strategic optimization is part of our ongoing transformation and rooted in our long-term view of our business,” said Geoffroy van Raemdonck, CEO of Saks Global.
“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.”
The closures will certainly affect jobs related to the closing locations, although the company did not reveal the exact number. Management said they are supporting the impacted teams and will provide transfer opportunities where available.
Customers are no longer able to purchase new gift cards at closing locations. Closing sales have commenced at such stores, during which all purchases are final and not eligible for return or exchange.
The company said it has “largely completed” its footprint optimization and will continue to engage with landlords to make final decisions on its go-forward store network.
The latest round of closures is part of the restructuring initiatives Saks Global has taken since filing for Chapter 11 bankruptcy protection in January.
The company previously decided to scale back most of its off-price operations as it refocused on luxury retail. It also reportedly ended its ‘Saks on Amazon’ partnership with e-commerce giant Amazon.
In the latest announcement, the company said it has accessed approximately $825 million of $1.75 billion in committed capital to its liquidity position.
