Saks Global has announced the closure of several major department store locations as part of a Chapter 11 bankruptcy restructuring. Saks Global is the parent company of Saks Fifth Avenue and Neiman Marcus. The closures come after the 2024 merger between the two luxury retailers, which left the company with nearly five billion dollars in debt.
Eight Saks Fifth Avenue stores will close in cities including Birmingham, Columbus, East Rutherford, New Orleans, Philadelphia, Phoenix, Richmond, and Tulsa. In addition, one Neiman Marcus store in Boston will shut down.
Company leaders say this is the first phase of their plan to reduce debt and stabilize the business. Chapter 11 bankruptcy allows companies to reorganize while continuing operations.
Retail experts say luxury department stores have struggled in recent years due to online shopping and changing consumer habits. Many shoppers now prefer buying high end products online rather than visiting large department stores.
Employees and local communities are concerned about job losses and economic impact. Saks Global says it hopes restructuring will help the company survive long term.
The retail industry continues to shift as traditional stores adjust to a digital marketplace.