Saks Global to close nine additional stores as part of bankruptcy restructuring

Saks Global announced it will close nine more brick-and-mortar locations as it narrows its physical footprint to concentrate on higher-performing outlets. The company said the planned closures include eight Saks Fifth Avenue stores, one Neiman Marcus store and most standalone Fifth Avenue Club personal styling suites. Saks also disclosed a plan to shift its Horchow home decor business to Neiman Marcus’ website beginning February 19. The company will request a U.S. bankruptcy judge approve the store shutdowns at a scheduled Friday hearing; the filing was disclosed in a court document submitted on Tuesday. Saks filed for bankruptcy protection last month, about a year after a consolidation intended to group several luxury brands under common ownership.

Key Points

Saks Global plans to close nine stores: eight Saks Fifth Avenue locations and one Neiman Marcus store, along with most standalone Fifth Avenue Club styling suites.
The company will transition Horchow, its home decor shop, to Neiman Marcus’ online site starting February 19.
Saks filed for bankruptcy protection last month and will seek court approval for the closures at a Friday hearing; the firm previously consolidated several luxury brands about a year earlier.

Saks Global said on Tuesday it will close nine additional retail locations as part of an effort to concentrate operations on stores it deems more profitable. In a court filing submitted on Tuesday, the luxury retail operator identified the closures as eight Saks Fifth Avenue locations and one Neiman Marcus location. The company also said the majority of its standalone Fifth Avenue Club personal styling suites will be shuttered.

Alongside the store shutdowns, Saks Global announced plans to transition its Horchow home decor business to Neiman Marcus’ online platform. The company set February 19 as the start date for Horchow to operate on Neiman Marcus’ website.

Saks said it will seek approval from a U.S. bankruptcy judge to complete the nine store closings at a court hearing on Friday. The request was included in a court document filed on Tuesday. The company previously entered bankruptcy protection last month, a step that followed the creation of a combined luxury retail group that brought together Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus roughly a year earlier.

In late January, the company announced plans to close the majority of its Saks OFF Fifth stores and the remaining Neiman Marcus Last Call locations, signaling a strategic move toward focusing on luxury retail formats and full-price sales. The latest round of announced closures continues that same emphasis on consolidating physical retail to prioritize higher-margin outlets and digital channels.

The company’s filing and the planned Horchow transition reflect a broader restructuring strategy being carried out under bankruptcy protection. The sequence of actions and the timing of court approval will determine the immediate operational changes for affected stores and services, including the standalone Fifth Avenue Club styling suites.

Context and next steps

Saks Global’s request for a judge’s approval at the upcoming Friday hearing is a procedural step within its bankruptcy proceedings. If the court grants the requested relief, the company will move forward with the announced closures and the Horchow migration to the Neiman Marcus online site on the stated date.

Risks

The announced closures require a U.S. bankruptcy judge’s approval at a scheduled Friday hearing - the outcome is pending and will affect implementation.
Ongoing bankruptcy proceedings create uncertainty around the pace and scope of the company’s restructuring, including additional store and service closures.
Shifting Horchow to an online-only presence and closing styling suites may disrupt operations and customer services tied to physical locations as the company narrows its brick-and-mortar footprint.

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