Home / Business and Economy / Saks and Neiman Marcus Cut More Stores Amid Bankruptcy
Saks and Neiman Marcus Cut More Stores Amid Bankruptcy
7 Mar
Summary
- 15 additional department stores are closing as part of bankruptcy restructuring.
- Closures include Saks Fifth Avenue and Neiman Marcus locations by spring.
- 500 brands have resumed shipping, releasing $1.3 billion in retail receipts.
Saks Global Inc., the parent company of Saks Fifth Avenue and Neiman Marcus, announced further department store closures on Friday as it navigates its Chapter 11 bankruptcy. The company will shutter an additional 12 Saks Fifth Avenue stores and three Neiman Marcus stores, with these locations expected to remain open until the end of May.
These new closures follow an earlier announcement last month to close eight Saks Fifth Avenue stores and one Neiman Marcus store, which are slated to close by the end of April. Once all 24 planned store closures are complete by spring, the company will operate 13 Saks Fifth Avenue stores, 32 Neiman Marcus locations, and Bergdorf Goodman.
In a positive development for the restructuring effort, 500 brands have resumed shipping, releasing approximately $1.3 billion in retail receipts. This accounts for over 80% of expected inventory from February through April. The company is also finalizing repayment agreements with around 175 suppliers, signaling progress in its financial recovery.
Previously, Saks Global had announced the winding down of 14 standalone Fifth Avenue Club personal styling suites, retaining three. It also ceased operations of home goods retailer Horchow.com, redirecting shoppers to NeimanMarcus.com. Additionally, most Saks Off Fifth locations are closing, with the remaining 12 serving as outlets for residual inventory.
