Neiman Marcus is set to close two more outposts.
The high-end chain has confirmed that it will permanently shut down its full-line stores in Natick, Mass., and Walnut Creek, Calif. The company said that the locations are expected to continue operations into 2021, with exact closing dates yet to be announced.
“We are always assessing our store footprint to ensure it is optimal to enhance revenues, overall profitability and our integrated retail strategy,” a spokesperson wrote in an email to FN. “These actions will help ensure the continued long-term success of our business and underscore our unrelenting focus on providing unparalleled luxury experiences and engagement.”
It comes a week after Neiman Marcus announced the closure of its 130,000-square-foot outpost in the Mazza Gallerie shopping center in Washington, D.C. Today, the company told FN that the Mazza Gallerie location would close by September.
The retailer also previously said that it would be shuttering its stores at Bellevue, Wash., as well as those in Fort Lauderdale and Palm Beach, Fla., plus the one in the massive Hudson Yards development. It will also exit 17 Last Call outlets.
Neiman Marcus went bankrupt on May 7 following weeks of speculation as the coronavirus pandemic forced the temporary closures of its Neiman Marcus, Last Call and Bergdorf Goodman banners across the country. However, the company’s pressures have been years in the making: In its quest for profitability, Neiman Marcus has struggled in the face of digital disruption and reduced foot traffic. Two years ago, it announced a four-year transformation plan that involved investments in omnichannel and supply chain technology, as well as embracing the growing resale trend through a minority stake in consignment company Fashionphile.
Now, as it seeks an exit from Chapter 11 proceedings, Neiman Marcus aims to alleviate its debt load. As part of its restructuring, the company has secured $675 million in debtor-in-possession financing to continue operations as it gradually reopens stores, invests in fall inventory and funds the expansion of its digital platforms.