<\/p>\n
Luxury retail giant Saks Global is moving closer to a bankruptcy exit, but its restructuring is still resulting in additional job cuts.<\/p>\n
Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, and Saks Off 5th, filed for Chapter 11 bankruptcy in January of this year.\u00a0<\/p>\n
As part of the broader restructuring, it has already closed several stores and cut more than 1,200 jobs at locations across the U.S.\u00a0<\/p>\n
Those earlier cuts were revealed in multiple WARN filings and included layoffs across 12 locations, including Saks stores and a Pennsylvania facility, which TheStreet previously reported.<\/p>\n
Now, Saks Global is cutting deeper at the corporate level as it works to emerge from Chapter 11 bankruptcy later this year.<\/p>\n
Saks Global cuts hundreds of corporate jobs<\/p>\n
Saks Global is laying off about 16% of its corporate staff, or roughly 640 jobs, according to the Wall Street Journal.<\/p>\n
The cuts do not include store or distribution-center positions and represent less than 4% of the company\u2019s total workforce.<\/p>\n
The latest layoffs come as Saks Global tries to shrink its operating footprint and streamline its business after its bankruptcy filing.<\/p>\n
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Some of the cuts are tied to Saks Global\u2019s move to exit certain businesses and simplify operations. Others are connected to changes following Saks\u2019 2024 acquisition of Neiman Marcus.<\/p>\n
Saks Global CEO Geoffroy van Raemdonck, in an official statement, said that these cuts are strategic as the company adapts to changing business needs and will require a smaller operational footprint.\u00a0<\/p>\n
The latest corporate layoffs add another layer to the company\u2019s restructuring. <\/p>\n
In March, Saks & Company WARN filings showed 1,226 job cuts tied to store and facility closures, including layoffs in Missouri, Maryland, North Carolina, Nevada, Ohio, Florida, Virginia, Illinois, California, and Pennsylvania.\u00a0<\/p>\n
Saks Fifth Avenue’s parent company may emerge from bankruptcy in the summer.<\/p>\n
Image Source: Shutterstock<\/p>\n
Saks moves closer to bankruptcy exit<\/p>\n
The layoffs come as Saks Global reaches a major milestone in its bankruptcy case.<\/p>\n
Saks Global said it received approval from the U.S. Bankruptcy Court for the Southern District of Texas for the company\u2019s explanation of its restructuring plan.<\/p>\n
This means that Saks can now ask creditors to vote on the plan and, with enough support, can exit Chapter 11 bankruptcy as early as this summer.<\/p>\n
\u201cToday\u2019s significant step forward demonstrates our continued momentum toward emergence this summer with a strong foundation for long-term growth,\u201d said Raemdonck.<\/p>\n
Adding that the company has made significant progress over the past three and a half months, and its future will continue to center around customers, giving them \u201ca true luxury shopping experience.\u201d<\/p>\n
Related: 58-year-old outdoors retailer nears Chapter 11 bankruptcy<\/p>\n
Saks Global\u2019s amended plan also lays out longer-term goals for the business. The company said it aims to generate $9 billion in total gross merchandise value by fiscal 2030 and deliver double-digit adjusted EBITDA by then.\u00a0<\/p>\n
The company said it expects to exit bankruptcy with nearly $700 million of liquidity. Saks Global noted that its capital partners have committed to providing $500 million in exit financing.<\/p>\n
\u201cThe committed capital we have secured, along with the growing momentum across our business, sets the stage for a successful future,\u201d said Raemdonck. Further noting that it is confident it will drive Saks Global to profitability in the coming years.<\/p>\n
The latest cuts show how Saks Global is trying to emerge from bankruptcy as a smaller, more focused luxury retailer. It is now trying to protect its position in luxury retail while cutting costs, closing weaker locations, and rebuilding vendor confidence.<\/p>\n
Saks Global\u2019s bankruptcy filing came during a difficult stretch for parts of the fashion and luxury retail industry.<\/p>\n
Pat McGrath Labs, the prestige makeup brand, also filed for bankruptcy in January and exited Chapter 11 in April after securing about $65 million in financing.<\/p>\n
These filings reflect a broader reset in the luxury and fashion industry, where shoppers have become more selective, and companies are under pressure to protect margins as they adapt to new buying habits.<\/p>\n
Rental and resale platforms like Nuuly and Rent the Runway have also changed how some consumers access designer fashion, making the traditional full-price luxury market more competitive.<\/p>\n
A McKinsey analysis of the state of fashion in 2026 notes that leaders are \u201cpessimistic,\u201d with 46% expecting \u201cconditions to worsen in 2026.\u201d Especially in North America, where executives viewed the market as \u201cunpromising or very unpromising.”\u00a0<\/p>\n
For Saks Global, this bankruptcy exit will mean more than just cutting costs. It is to successfully adapt and compete in a market where shoppers have more options and brands are working harder to win demand.<\/p>\n
Related: Mall fashion retailer closes 150 stores in turnaround push<\/p>\n
#Luxury #retailer #cuts #corporate #jobs #bankruptcy #exit #nears<\/p>\n","protected":false},"excerpt":{"rendered":"
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