Saks Global to lay off 1,200 employees amid bankruptcy
Saks Global, the parent company behind Saks Fifth Avenue and Neiman Marcus, is laying off more than 1,200 employees after filing for bankruptcy in January with $3.4 billion in debt.
The company's restructuring plan also includes shutting down 15 stores by May 2026.
Locations set to close
12 Saks Fifth Avenue stores — including Beachwood, OH; Chevy Chase, MD; Chicago, IL (Michigan Avenue); Costa Mesa, CA; Las Vegas, NV; Huntington Station, NY; Palm Desert, CA; Raleigh, NC; San Antonio, TX; Sarasota, FL; St. Louis, MO; and Tysons, VA — and three Neiman Marcus locations (Ala Moana in Honolulu, HI; Topanga in Canyon Park, CA; and Westchester in White Plains, NY) are set to close.
After these changes, just 13 Saks Fifth Avenue stores and 32 Neiman Marcus stores will remain across the US.
Saks secured $1 billion in emergency financing
To keep things running, Saks Global secured $1 billion in emergency financing and said it would use about $600 million of the new loan to pay existing vendors, with up to $330 million expected to be distributed to vendors with overdue invoices, helping more than 500 brands start shipping products again.
This brought in nearly $1.3 billion in retail sales.
Saks bought Neiman Marcus for $2.7 billion in 2024
Saks bought Neiman Marcus for $2.7 billion at the end of 2024, a move that quickly led to cash crunches and delayed payments.
Now, they're focusing on their top-performing luxury stores while closing side businesses like Horchow.com and most Saks Off Fifth locations.