Saks Global announced plans to cut more than 1,200 jobs and shut down 15 stores across the United States as part of its ongoing bankruptcy restructuring.
The company, which owns Saks Fifth Avenue and Neiman Marcus, filed for Chapter 11 bankruptcy protection in January with about $3.4 billion in debt.
The layoffs are tied to store closures scheduled between May 6 and May 31, according to official filings.
In total, 12 Saks Fifth Avenue stores and three Neiman Marcus locations will close in cities including Chicago, Las Vegas, San Antonio, and Tysons, Virginia.
According to NY Post, after the changes, the company will operate just 13 Saks stores and 32 Neiman Marcus locations nationwide.
"As part of these actions and following careful consideration, we will be saying goodbye to some of our talented colleagues," a company representative said.
"We are deeply grateful for these team members' hard work and dedication, and will support them as much as we can through this transition."
Saks Global said on Monday it has got access to $300 million more of its $1.75 billion bankruptcy funding package, and said an ad hoc group of bondholders has approved the luxury retailer’s five-year business plan. https://t.co/JRIjVDhdoP
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Saks Secures $1 Billion to Pay Vendors
The restructuring comes after a challenging period for Saks Global. The company acquired Neiman Marcus for $2.7 billion in 2024, a move that added financial pressure and led to delayed payments to vendors. Sales also slowed, making it harder to manage its growing debt.
To stay afloat, Saks secured $1 billion in emergency financing. About $600 million is being used to pay vendors, including up to $330 million for overdue invoices, NewsBytes reported.
This effort has helped more than 500 brands resume shipping products, bringing in nearly $1.3 billion in retail sales.
As part of its recovery plan, Saks is focusing on its strongest luxury stores while scaling back less profitable operations.
This includes closing most Saks Off 5th locations and all Neiman Marcus Last Call outlets, along with shutting down side businesses like Horchow.com.
Despite the cuts, some flagship locations will remain open. The company confirmed that its two Bergdorf Goodman stores in New York City are not affected by the closures.
The layoffs also follow recent worker concerns about payroll. Employees at Bergdorf Goodman reported unexpected deductions from their paychecks earlier this year.
Management said the issue was under review and explained that changes in pay could be due to routine yearly adjustments, such as tax and benefits updates.
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