In the wake of a January Chapter 11 bankruptcy filing from Saks Global, owner of Saks Fifth Avenue and Neiman Marcus, the luxury retailer has begun to close a number of stores across its portfolio of brands. Last month, for instance, the company announced the shuttering of many of its outlet stores.
But now, the Saks Global has announced the closure of some of its high-end department stores, for which the company is famous. Here’s what you need to know.
What’s happened?
According to a court document filed this week with the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, Saks Global has decided to close nine of its luxury department stores.
These announced closures come just weeks after the company announced it was shuttering many of its outlet stores, including many Last Call and Saks Off 5th locations.
The reason Saks Global has given for the shuttering of some of its flagship department stores is that the store closures will allow the company’s global debtors “to better serve their luxury customers, strengthen brand partner relationships and drive full-price selling to enable sustainable, profitable growth.”
When are the department stores closing?
According to court documents, the department stores marked for closure will close their doors for good on approximately April 30, 2026, less than three months from now.
The company expects the store closing sales at the affected locations to begin around February 20.
The store closures are subject to approval from the judge presiding over the bankruptcy case. A ruling is expected to be made on Friday.
After the closure of these locations, Saks Global will have 35 Neiman Marcus stores and 25 Saks Fifth Avenue stores in operation.
Which Neiman Marcus stores are closing?
According to the court documents, only one Neiman Marcus store is closing:
- Massachusetts: 5 Copley Place, Boston, MA
Which Saks Fifth Avenue stores are closing?
Unfortunately, Saks Global has decided to close significantly more Saks Fifth Avenue stores. The list includes eight locations in eight different states:
- Alabama: 129 Summit Blvd, Birmingham, AL
- Arizona: 2446 East Camelback Road, Phoenix, AZ
- Louisiana: 301 Canal Street, New Orleans, LA
- New Jersey: Meadowlands Sports Complex, East Rutherford, NJ
- Oklahoma: 1780 Utica Square, Tulsa, OK
- Ohio: 1350 Polaris Pkwy, Columbus, OH
- Pennsylvania: 2 Bala Plaza Bala, Cynwyd, PA
- Virginia: 9214 Stony Point Parkway, Richmond, VA
Why is Saks Global filing for bankruptcy?
As Fast Company previously reported, the luxury department store owner has faced extreme financial difficulty in recent years. Like many brick-and-mortar retailers, the company’s stores have seen declining foot traffic, especially after the onset of the COVID-19 pandemic.
Additionally, inflationary costs, tariffs, and increased online competition have all cut into the company’s bottom line.
However, the major financial blow to Saks Global came when Hudson’s Bay, Saks’s previous parent company, acquired competitor Neiman Marcus in 2024 for around $2.7 billion. That move left the new company, Saks Global, saddled with debt.
Announcing last month that its bankruptcy process was underway, Saks Global CEO Geoffroy van Raemdonck said the move “presents a meaningful opportunity to strengthen the foundation of our business and position it for the future.”