Saks Global will close 8 Saks Fifth Avenue stores and 1 Neiman Marcus store in restructuring


NEW YORK (AP) – The operator of Saks Fifth Avenue and Neiman Marcus said 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 reduces debt during its restructuring in Chapter 11 bankruptcy.

Saks Fifth Avenue locations to close include locations 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.

Stores slated to close will remain open through the end of April, the company said.

Saks Global also said Tuesday it will end 14 Fifth Avenue Club personal style suites on Tuesday, though it will maintain three standalone locations. It will also shut down its parent site called Horchow.com, a business that Neiman Marcus acquired in the late 1980s. Beginning February 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 closings at Neiman Marcus and Saks Fifth Avenue, the company said. Saks Global said the stores targeted for closure represent a small part of its business and were not profitable.

“We are initiating a series of actions to strengthen Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman as luxury destinations with a seamless multi-channel shopping experience,” Geoffroy van Raemdonck, CEO of Saks Global, said in a statement.

The moves follow Saks’ announcement last month that it would is closing most of its Saks Off 5th locations. Saks Global operates 70 Saks Off 5th locations and plans to close all but 12 stores. The remaining outlets will primarily serve as a sales channel for residual inventory from Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, it said.

Last month, Saks Global also announced it was closing its five remaining Last Call stores, which are outlets that serve as a discount channel for Neiman Marcus.

Saks Global filed for Chapter 11 reorganization on January 14, hit by increased competition and the huge debt it took on. to buy its rival in the luxury sectorNeiman Marcus, just over a year ago.

Saks Global had secured roughly $500 million of the broader $1.75 billion financing package. This money will help pay for it suppliers, who have been faced with a pile of unpaid invoices from the retailer and who are critical to keeping the store stocked with goods.



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