Saks Fifth Avenue, Neiman Marcus closing several stores: What to know

What Chapter 11 bankruptcy means

Filing for bankruptcy doesn't always mean the end for an American business.

NEW YORK - The parent company of Saks Fifth Avenue and Neiman Marcus announced it is closing more department stores as it trims debt during its Chapter 11 bankruptcy restructuring.

The luxury retail brand previously said the decision to close stores was part of the company’s ongoing evaluation of its operational footprint.

Saks Fifth Avenue, Neiman Marcus closing several stores

Big picture view:

Saks Global Inc. said Friday it will close 12 more Saks Fifth Avenue stores and three more Neiman Marcus stores. 

The shuttered Saks stores include sites in Chevy Chase, Maryland, Chicago, Las Vegas and San Antonio, Texas. The stores will remain open until the end of May, a company spokesperson said.

What they're saying:

"We recognize the impact these strategic decisions have on our colleagues and are deeply grateful for their contributions. We are supporting the impacted teams as much as we can through this transition and will provide transfer opportunities where available," Geoffroy van Raemdonck, the chief executive officer of Saks Global, said in a statement.

Saks Global Inc. said it will close 12 more Saks Fifth Avenue stores and three more Neiman Marcus stores. (Credit: Smith Collection/Gado/Getty Images)

Saks files for bankruptcy

Dig deeper:

The closures come on top of the eight Saks Fifth Avenue stores and one Neiman Marcus store it said it would close last month. 

The stores targeted for the first round of closing are expected to remain open until the end of April.

The backstory:

This news comes just weeks after Saks’ parent company filed for Chapter 11 bankruptcy protection in mid-January in the U.S. Bankruptcy Court for the Southern District of Texas after missing a $100 million interest payment in December.

Following the filing, Saks Global announced it secured a financing commitment of approximately $1.75 billion, backed by senior secured bondholders and asset-based lenders, to support operations during the restructuring. 

RELATED: Most Saks OFF 5TH stores to close amid bankruptcy: Here’s where

Saks Fifth Avenue's parent company gained ownership of Neiman Marcus and Bergdorf Goodman and spun off its U.S. luxury assets. However, in order to fund the acquisition, Saks took on about $2.2 billion of debt. 

Saks Global has been shrinking its business since it filed for bankruptcy. Last month, it said it would also wind down 14 standalone Fifth Avenue Club personal styling suites, keeping three.

It also shuttered home goods retailer Horchow.com, a business that Neiman Marcus acquired in the late 1980s. As of Feb. 19, shoppers have been redirected to the home category on NeimanMarcus.com.

Last month, Saks also announced actions to close the majority of its Saks OFF 5th locations and remaining Last Call stores across the U.S.