Saks Global will close 15 more stores as the luxury retailer looks to cut losses and focus on more profitable locations after filing for bankruptcy earlier this year.
The company said it will close 12 Saks Fifth Avenue stores and three Neiman Marcus locations as part of an effort to realign its store portfolio and prioritize markets with a higher concentration of luxury shoppers.
The move follows an earlier round of closures announced last month.
Sachs Global said its future physical presence will be centered on “best performing and most desirable” locations.
In some markets, the retailer plans to operate either Saks Fifth Avenue or Neiman Marcus stores based on performance and customer demand, while keeping both banners in key luxury locations where growth opportunities are strong.
With the latest closings, Saks Global said it had “completely completed a major overhaul of its footprint but continues to engage with landlords as it works to make final decisions about the store operator’s network”.
Bergdorf Goodman’s operating footprint will remain unchanged.
Sachs Global CEO Jeffrey van Riemdonck said: “This strategic restructuring is part of our ongoing transformation and is rooted in our long-term vision for our business.
“Our developing store portfolio will contain the best-performing and most sought-after locations in markets with a strong focus on luxury customers, enabling us to deepen loyalty and drive continued growth.”
The retailer added that its stores and e-commerce platforms at Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman will continue to operate as usual, except for select locations that will be closed.
Customers in markets without physical stores will be served through e-commerce and remote sales.
The company said its ambitions have strengthened, with access to around $825 million in committed capital to $1.75 billion, enabling it to resume placing orders with brand partners.
Inventory turnover accelerated as more than 500 brands resumed deliveries, releasing nearly $1.3 billion in retail receipts.
Saks Global said it has reached or is close to reaching agreements with more than 175 brands as it works to rebuild supplier relationships during the restructuring.
“Saks Global to Close 15 Additional Stores Amid Restructuring” was originally created and published by Retail Insight Network, a brand owned by Global Data.
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