Eight Saks Fifth Avenues stores and one Neiman Marcus location will shutter as the first phase of parent company Saks Global’s plan to reduce its retail footprint in bankruptcy.
The goal is to reestablish Saks Global and its remaining stores as “the ultimate destinations for luxury with a seamless multi-channel shopping experience,” CEO Geoffroy van Raemdonck said in a statement. In practice, that means investing in profitable locations where customers are most willing to pay full price.
Affected locations include the American Dream Mall in East Rutherford, NJ; Biltmore Fashion Park in Phoenix; the Shops at Canal Place in New Orleans; and Neiman Marcus Copley Place in Boston.
The move follows Saks’ announcement last month that it will be winding down its off-price segment, Saks Off Fifth, in the coming months. By culling unprofitable locations, the retailer will be in a better position to invest in long-term growth, improve product assortment and offer more personalised customer service, Van Raemdonck added.
As part of its announcement Tuesday, Saks said it will also close most of its standalone Fifth Avenue Club locations, which are styling suites that offer alterations and personal shopping assistance.
Saks Global Files for Bankruptcy After Monthslong Hunt for Cash
The Chapter 11 filing comes just over a year after the retailer acquired Neiman Marcus and Bergdorf Goodman. The combined company struggled almost from the start amid sinking sales and fraught relations with vendors and creditors.
