Saks Global Enterprises, the parent company of the luxury stores Saks Fifth Avenue, Neiman Marcus, announced plans to close 15 more stores amid its $1 billion bankruptcy, the California Post reports.
The company plans to close 12 Saks Fifth Avenue stores and three Neiman Marcus stores located in Chicago, Las Vegas, San Antonio and Tysons, Virginia, while 13 Saks Fifth Avenue and 32 Neiman Marcus stores will remain in operation. Saks previously faced pushback on its bankruptcy financing from brands including Chanel, Dolce & Gabbana and LVMH, as well as landlords and its online sales partner Amazon, but resolved concerns prior to U.S. Bankruptcy Judge Alfredo Perez approved the financing in a Houston court hearing last week.
The company officially filed for Chapter 11 bankruptcy in the Southern District of Texas on January 13 following months of speculation. The filing states that the company owes millions to several of the biggest names in luxury fashion including $136 million to Chanel; $59 million to Kering, the parent company of Gucci; and $33 million to Capri Holdings, the parent company of Michael Kors.
Saks Global Enterprises’ potential bankruptcy was previously reported amid signs that its $2.7 billion deal to acquire Neiman Marcus in 2024, which was reportedly financed by $2.2 billion in high-interest bonds, left it facing financial struggles.
“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,” said Geoffroy van Raemdonck, CEO of Saks Global, in a news release.
Recent Comments