Dramatic Downsizing of the Saks Global Store Fleet Seen in a Bankruptcy

Core Insights - Saks Global is expected to file for bankruptcy by early-to-mid next week, with a reorganization plan that includes numerous store closures across its portfolio [1] - At least 20 Saks Fifth Avenue and Neiman Marcus locations have been identified for closure, with a total of 33 Saks Fifth Avenue stores and 36 Neiman Marcus stores in operation [2] - The company is in discussions with key financial stakeholders and exploring all potential options, with no final decisions made yet [3] Store Closures - The reorganization plan will likely lead to the closure of underperforming stores, particularly in locations such as St. Louis, Las Vegas, and several cities in Texas and Florida [4] - Saks Fifth Avenue's stronger locations include Houston, Naples, and Beverly Hills, while Neiman Marcus's top stores are in Dallas, Beverly Hills, and San Francisco [5][6] Financial Strategy - If a Chapter 11 reorganization is approved, flagship locations like Bergdorf Goodman and Saks Fifth Avenue in Manhattan are expected to survive [4] - The company has previously indicated plans to close up to 10 Saks Fifth Avenue stores following its merger with Neiman Marcus in December 2024 [3]