The proprietor of Saks Fifth Avenue stated it would shut down Neiman Marcus’s century-old flagship retailer — simply two months after buying its longtime luxurious rival in a blockbuster merger.
The swanky store — situated inside a 111-year-old, nine-story Renaissance Revival tower in downtown Dallas — will shut March 31 on account of “circumstances beyond our control,” in keeping with a memo from Saks World CEO Marc Metrick that was obtained by The Publish.
In a weird twist, a supply near the scenario stated Saks World — which acquired Neiman Marcus in a $2.6 billion deal in December — bumped into static with one of many constructing’s a number of landlords over a parcel of land that lies below the shop’s down escalator.
“Without access to this, we are unable to provide the level of service that our customers know and love about Neiman Marcus,” a supply near Neiman instructed The Publish.
The owner for the down escalator, which occupies a 2,500-square-foot sliver of the constructing’s footprint, is Slaughter Companions LP, in keeping with a supply near the scenario. Slaughter didn’t reply to a request for remark.
Metrick insisted that the flagship closure will not be “tied to the recent NMG acquisition” and stated the company workplaces above the shop received’t be affected by the shop closure.
He added that Saks is “disappointed to be losing a piece of our history due to circumstances beyond our control.”
“We received a notice from a landlord to terminate our occupancy, forcing us to close this location, effective March 31, 2025,” in keeping with the memo.
Workers impacted by the closure will probably be supplied “transfer opportunities” to different close by shops together with the close by NorthPark mall location, which is getting a $100 million renovation, in keeping with the memo.
Over the previous two weeks, Metrick and high brass together with Richard Baker, govt chairman and chief govt of Saks dad or mum HBC, have been visiting Neiman Marcus’ 36 shops nationwide.
A “handful” of Neiman Marcus and Saks Fifth Avenue areas will possible shut over time, a supply stated.
Neiman Marcus staff have been bracing for layoffs because the acquisition was introduced final summer season.
“There’s no way all of us are needed,” one Neiman govt instructed The Publish. “We’re all trying to stay focused on our jobs while facing reality that at some point there will be decisions made about merchants, planners, finance, human resources, IT, legal, marketing and all other functions.”
The flagship retailer will not be the one actual property snafu in Dallas.
In 2023, Neiman Marcus took over 85,000 sq. toes at CityPlace Tower as a part of a $5.2 million tax incentive deal to maintain the long-lasting retailer within the metropolis.
The settlement requires Neiman Marcus to take care of 1,100 jobs in Dallas, with 35% of its headquarters staff being metropolis residents. On the time, Neiman Marcus stated it might create a minimal of 300 new jobs in Dallas by the tip of 2026.
However the CityPlace deal was a fiasco, as “the average site usage for Dallas-based associates was only 11 days per year, or about 4%,” in keeping with Saks World.
This month, Saks World despatched a lease termination discover to CityPlace’s landlord, NexPoint, which is disputing the corporate’s proper to take action.
“We do not believe their lease allows for such termination,” NexPoint stated in an announcement.
The ill-fated CityPlace deal was reduce by former CEO Geoffroy van Raemdonck, who offered his Dallas mansion and moved to Manhattan in 2023 as he led an exodus of high Neiman executives out of town.
One other hub at 5 Bryant Park in Manhattan may also shut as Saks World consolidates its company headquarters at its Brookfield workplace in downtown Manhattan.
The workplace closures come as the posh business is struggling. Saks instructed its distributors on Feb. 14 that it’ll make past-due funds in installments beginning in July and that every one new orders will probably be paid inside 90 days.
“We recognize the challenges of the last year, and are now providing the clarity and certainty that our brand partners have been asking for and deserve,” Saks World stated in an announcement. “All of our partners will be paid what they are owed.”
When Baker and Metrick left the Dallas flagship, they took a gold-framed portray of the retailer’s founder Stanley Marcus, which had been “abandoned” within the company workplaces above the shop.
Now, it’s hanging in Baker’s Manhattan workplace, Saks officers confirmed.
“Richard, who has been a long time fan of Stanley, rescued the painting and shipped it to our Brookfield Offices in New York to ensure a piece of Neiman Marcus history and culture was represented in Saks Global’s headquarters.”
