Saks and Neiman Marcus Cut Store Count as Debt Gets Slashed

The luxury retail giants are trimming their physical footprints to stay afloat. In a new move, the parent company will shut 12 Saks Fifth Avenue locations and three Neiman Marcus shops by the end of May. This follows earlier closures that ended in April, bringing the total number of shutdowns to 24 this spring. The affected Saks outlets include sites in Chevy Chase, Maryland; Chicago; and San Antonio, Texas. Neiman Marcus will lose stores in other markets as well. After the cuts, only 13 Saks locations—including the flagship on Manhattan’s Fifth Avenue—will remain open. Neiman Marcus will keep 32 stores, and the company still owns Bergdorf Goodman in New York City.Despite the store closures, the business is keeping its online sales humming. About 500 brands have restarted shipping, generating roughly $1. 3 billion in retail receipts. This accounts for more than 80 % of the inventory expected between February and April, indicating that e‑commerce is a key pillar in the restructuring plan. The parent company has also negotiated repayment agreements with around 175 suppliers, easing cash flow pressures. Meanwhile, it is winding down 14 standalone Fifth Avenue Club personal styling suites, leaving only three active. The home goods retailer Horchow. com was shut down last month; shoppers now find those products on NeimanMarcus. com. These moves are part of a broader strategy to focus on the most profitable parts of the business and reduce debt during Chapter 11 proceedings. By concentrating resources on online channels and a smaller number of flagship stores, the company hopes to stabilize finances while still offering luxury goods.