Saks Global, which operates Saks Fifth Avenue and Neiman Marcus, has filed for bankruptcy.<\/p>\n
The high-end clothing retailer announced the move on Wednesday, saying in a statement that the Chapter 11 filing will \u201cfacilitate its ongoing transformation.\u201d<\/a><\/p>\n In the Philadelphia region, Saks Global has long operated an expansive Saks Fifth Avenue store off City Avenue<\/a> in Bala Cynwyd<\/a>. The company also has a Neiman Marcus at the King of Prussia<\/a> Mall, as well as Saks Off 5th discount outlets at the Franklin Mall<\/a> in Northeast Philadelphia<\/a> and at the Metroplex shopping center<\/a> in Plymouth Meeting<\/a>.<\/p>\n Both local Saks Off 5th locations are slated to close soon, as was reported this fall by several news outlets, including the Philadelphia Business Journal.<\/a> <\/p>\n Here\u2019s what the bankruptcy filing means for local Saks shopper.<\/p>\n Is Saks Fifth Avenue in Bala Cynwyd closing?<\/p>\n No. At least not in the immediate future.<\/p>\n Saks has filed for Chapter 11 bankruptcy<\/a>, which means the company intends to reorganize financially and stay in business. That\u2019s opposed to Chapter 7 bankruptcy<\/a> \u2014 as is the Iron Hill Brewery case<\/a> \u2014 through which businesses liquidate all their assets and close locations. <\/p>\n \u201cTo be clear, a Chapter 11 filing does not mean that Saks Global is going out of business,\u201d Saks wrote in a bankruptcy FAQ on its website.<\/a><\/p>\n But when companies reorganize through bankruptcy, they sometimes do close stores, particularly underperforming ones.<\/p>\n Saks executives alluded to the possibility of this in its statement, which read in part: \u201cAs part of the Chapter 11 process, the company is evaluating its operational footprint to invest resources where it has the greatest long-term potential. This approach reflects an effort to focus the business in areas where the company\u2019s luxury retail brands are best positioned for sustainable growth.\u201d<\/p>\n The Saks Fifth Avenue opened in Bala Cynwyd decades ago<\/a>. It is now the retailer\u2019s only location in the Philadelphia region and is called \u201cSaks Philadelphia\u201d<\/a> on the company\u2019s website. <\/p>\n \u00bb READ MORE: City Avenue in Lower Merion set to triple its apartment count, transforming the office and retail hub<\/a><\/p>\n The Inquirer reported in 2024 that business at the store was strong <\/a> and that the chain had resisted offers to move to King of Prussia, according to the City Ave District. <\/p>\n In response to questions from The Inquirer about the future of Philadelphia-area stores, Saks Global said: \u201cOur footprint evaluation is underway, and we have already begun to work collaboratively with our real estate partners to find future-facing solutions, where possible, to achieve a stable and sustainable business model and optimized portfolio on the other side of this process.\u201d<\/p>\n Is Neiman Marcus in King of Prussia closing?<\/p>\n Also not in the immediate future.<\/p>\n King of Prussia Mall has long been a go-to spot for retailers<\/a>. Even after the challenges of the pandemic<\/a>, and amid competition from online retailers<\/a>, the center remains among the region\u2019s thriving shopping destinations.<\/p>\n In 2024, Saks Global bought Neiman Marcus<\/a> in a $2.65 billion deal after Neiman Marcus filed for Chapter 11 bankruptcy<\/a> during the pandemic. <\/p>\n Are Saks credit cards or gift cards impacted by the bankruptcy?<\/p>\n No, the company says.<\/p>\n \u201cThere are no changes to our credit card programs and rewards, with customers continuing to shop, earn and redeem benefits as usual,\u201c the company wrote in the FAQ. \u201dWe continue to accept payments as usual, including credit cards and gift cards, with no changes to how customers transact with us.”<\/p>\n Are Saks\u2019 return policies impacted by the bankruptcy?<\/p>\n No, according to the company. <\/p>\n \u201cOur refund and exchange policy is expected to remain unchanged, with refunds and exchanges being accepted and issued as usual,\u201d the company wrote.<\/p>\n I am waiting on a package from Saks. Will my order still arrive? <\/p>\n Yes, all current and future orders will be delivered as usual, the company said. <\/p>\n What\u2019s next for Saks? <\/p>\n The company says it is not going anywhere. <\/p>\n \u201cSaks Global is firmly focused on the future, and we look forward to continuing to serve customers and deliver for our stakeholders,\u201d the company wrote in the FAQ. <\/p>\n As of Wednesday, Saks was waiting for court approval of a $1.75 billion financing deal that would come with an immediate $1 billion debtor-in-possession loan from an investor group.<\/p>\n If approved, the deal \u201cwill provide ample liquidity to fund Saks Global\u2019s operations and turnaround initiatives,\u201d the company said in a statement.<\/p>\n