Saks Fifth Avenue at Canal Place closing | Business News

Saks Fifth Avenue, the luxury department store that has anchored Canal Place since the mid-1980s, will close in the coming months as its bankrupt parent company downsizes its footprint.

Saks Global, which filed for Chapter 11 bankruptcy protection last month, announced Tuesday that it will close eight Saks Fifth Avenue stores and one Neiman Marcus around the country. 

The Canal Place store will remain open until the end of April, according to a statement from a company spokesperson.

“As part of Saks Global’s ongoing evaluation of its physical footprint, we have made the decision to close select Saks Fifth Avenue and Neiman Marcus locations, including the Saks Fifth Avenue New Orleans location, based on a number of factors, including performance and lease economics,” it said. 

According to company officials, the closures are the “first phase” of its reorganization as executives look to cut down their portfolio “focus on profitable locations with the highest growth potential.”

Canal Place General Manager Matt Brown said management of the shopping center remains committed to providing “a refined shopping experience” and hoped to soon share more information about future tenants.  

“While we are disappointed that Saks Fifth Avenue will be closing its New Orleans location as part of its national restructuring, Canal Place remains the premier luxury retail destination for the Gulf South,” 

“Because we have been closely monitoring the national retail landscape and the Saks Global bankruptcy proceedings, our team has been proactive in preparing for this possibility,” Brown said. “We have already initiated discussions with tenants that align with our commitment to serving the discerning shopper.”

The announcement is a blow to retail on Canal Street, New Orleans’ historic shopping corridor that has gradually seen the departure of department stores and high end retailers over the past several decades. In November, Adler’s announced it is closing its luxury jewelry store down the street from Saks after more than 120 years in business. 

Four of the stores slated for closure are in markets that already have another store owned by Saks Global, also the parent company of Neiman Marcus and Bergdorf Goodman.

Both brands were acquired under the leadership of former Saks CEO Richard Baker, who took on about $2.2 billion of additional debt to finance the transaction. The company began defaulting with a missed interest payment due Dec. 30.

Saks Global CEO Geoffroy van Raemdonck, the former Neiman Marcus executive who took over following the Jan. 13 bankruptcy filing, said in a statement that the closures would reinforce the brands’ reputation as a luxury destinations “while positioning our company to make investments that enable long-term growth and value creation.”

The closures announced Tuesday will leave Saks Global with 25 remaining Saks Fifth Avenue Stores and 35 Neiman Marcus stores, as company officials announced plans to decide which to keep open based on “factors including performance and lease economics.”

Earlier this month, the company closed a majority of its Saks OFF 5th retail locations and all of its Last Call stores. 

“Importantly, opportunities within the luxury market remain strong, and Saks Global is primed to play a distinct, enduring role within the industry for many years to come,” van Raemdonck said.

Last month, luxury fashion brand Chanel shut down its boutique within the Canal Place Saks after the department store racked up about $136 million in unpaid bills.

Chanel was later appointed as a member of a committee of unsecured creditors, along with other major brands including LVMH, Kering Americas, investor Amazon and landlord Brookfield. A meeting of its creditors is scheduled for Feb. 23.

Other Saks Global locations set to close this spring include Birmingham, Alabama; Columbus, Ohio; Richmond, Virginia; Tulsa, Oklahoma; East Rutherford, New Jersey; Philadelphia; and Phoenix, the later three of which have other Saks or Neiman stores. 

This is a developing story, check back for updates