The operator of Saks Fifth Avenue and Neiman Marcus said that it will close eight Saks Fifth Avenue stores as well as its Neiman Marcus Boston store as it focuses on its most profitable businesses and pares down debt during its Chapter 11 bankruptcy restructuring.
Saks Fifth Avenue’s locations to be shuttered include sites in Philadelphia; Columbus, Ohio; and Phoenix, the company said. That will leave parent company Saks Global with 25 Saks Fifth Avenue stores and 35 Neiman Marcus stores. The company will continue to operate its two Bergdorf Goodman stores.
The stores targeted for closing will remain open until the end of April, the company said.
Saks Global also said Tuesday it will be winding down 14 standalone Fifth Avenue Club personal styling suites on Saturday, though it will keep three standalone sites. It also will close its home site called Horchow.com, a business that Neiman Marcus acquired in the late 1980s. As of Feb. 19, shoppers will be redirected to the home category on NeimanMarcus.com, where they will find the full assortment previously available on Horchow.com.
The moves mark the initial phase of store closures across Neiman Marcus and Saks Fifth Avenue, the company said. Saks Global said the stores earmarked for closing represent a small part of its business and were not profitable.
“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,” Geoffroy van Raemdonck, CEO of Saks Global, said in a statement.
The moves follow Saks’ announcement last month that it would close most of its Saks Off 5th locations. Saks Global operates 70 Saks Off 5th locations and plans to shutter all but 12 stores. The remaining outlets will serve primarily as a selling channel for residual inventory from Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, it had said.
Last month, Saks Global also announced it was shuttering the remaining five Last Call stores, which are outlet locations that serve as a discount channel for Neiman Marcus.
Saks Global filed for Chapter 11 reorganization on Jan. 14, buffeted by rising competition and the massive debt it took on to buy its rival in the luxury sector, Neiman Marcus, just over a year ago.
Saks Global had secured roughly $500 million of the broader $1.75 billion financial package. That money will help to pay its suppliers, who have faced a pile of unpaid bills from the retailer and who are critical for keeping the store stocked with merchandise.
Credit: Source link
