Saks Global Enterprises LLC, which filed for Chapter 11 bankruptcy in January, announced the closure of an additional 12 Saks Fifth Avenue and 3 Neiman Marcus locations. The closings come on the heels of the announcement in February of nine store closures around the U.S.

All told, there will be about 13 Saks stores remaining nationwide, including its flagship store on Manhattan’s Fifth Avenue. That compares with about 33 Saks stores before the company filed for bankruptcy in January. The company will operate 32 Neiman Marcus stores, down from 36 pre-bankruptcy, and two Bergdorf Goodman locations.

“This strategic optimization is part of our ongoing transformation and rooted in our long-term view of our business,” said Geoffroy van Raemdonck, chief executive officer 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. With a refined footprint, we are creating a stronger platform for our brand partners and an even more compelling customer experience as we focus on investing in the luxury experience, sharpening the differentiation of our coveted banners and fully leveraging our prime owned and other retail locations.”

Saks Global said while select markets will be streamlined to include either a Saks Fifth Avenue or Neiman Marcus store, the company will continue to operate both banners in some major markets. Saks Global wrote, “By further differentiating its retail banners through distinct assortments and experiences, the company will honor the heritage of each brand while positioning itself to lead multiple segments of the luxury market over the long-term.”

Saks Global said that with the announced closures, it has” largely completed the optimization of its footprint but continues to engage with landlords as it works to make final decisions on its go-forward network of stores.”

No changes are planned for the Bergdorf Goodman operational footprint.

“We recognize the impact these strategic decisions have on our colleagues and are deeply grateful for their contributions. We are supporting the impacted teams as much as we can through this transition and will provide transfer opportunities where available,” van Raemdonck said.

Saks Global added that with access to approximately $825 million of $1.75 billion in committed capital, it has improved its liquidity position, enabling it to fund new orders with brand partners. These efforts have led to a “significant acceleration” in inventory flow, with shipping resumed by more than 500 brands, resulting in close to $1.3 billion in retail receipts. This accounts for over 80 percent of the inventory the company expects to receive from February through April, with momentum expected to continue.

The company said it has reached, or nearly reached, agreements with over 175 brands across all categories and “is committed to having equally productive discussions with more brand partners.”

The 15 stores set to close include:

  • 26100 Cedar Road, Beachwood, OH
  • 5555 Wisconsin Avenue, Chevy Chase Village, MD
  • 700 N. Michigan Avenue, Chicago, IL
  • 3333 Bristol Street, Costa Mesa, CA
  • 3200 Las Vegas Blvd. South, Las Vegas, NV
  • 230 Walt Whitman Road, Huntington Station, NY
  • 73555 El Paseo, Palm Desert, CA
  • 7700 Old Wake Forest Road, Raleigh, NC
  • 7400 San Pedro Avenue, San Antonio, TX
  • 120 University Town Center Drive, Sarasota, FL
  • 1 Plaza Frontenac Street, St. Louis, MO
  • 2051 International Drive, McLean, VA
  • 1450 Ala Moana Blvd. Level Three, Honolulu, Hawaii (Neiman Marcus)
  • 6550 Topanga Canyon Blvd., Canoga Park, CA (Neiman Marcus)
  • 2 Maple Avenue, White Plains, NY (Neiman Marcus)

Image courtesy Saks Fifth Avenue