Saks Fifth Avenue filed for Chapter 11 bankruptcy. Hallie Abrams warns Ohio shoppers to use gift cards immediately before the Beachwood Place store closes in May, and expect deepening discounts as the closure date approaches. Smaller designers will be hit hardest as vendors pull back.
I'm sure you've heard that Saks Fifth Avenue Global is in the midst of Chapter 11 restructuring. So now we— what restructuring means is that they are not fully bankrupt, meaning they're not closing all their stores, but they are closing some of their stores. And if you live in Ohio, that is affecting both the Columbus store, which has already closed, and the Cleveland, Ohio Beachwood Place store, which is now been put on the chopping block to close. So what does that mean to us as shoppers, as consumers? It means a couple things. One, if you have a gift card for Saks Fifth Avenue, Bergdorf Goodman, Neiman Marcus, because it's all under the same umbrella, please use it soon. I believe that the stores will still be around, but I don't know. I don't have a crystal ball. And if you have a gift card, it will not be usable if they fully, fully close. Two, if you're in Cleveland, Ohio, The Beachwood Place store is already starting to put some things on sale. I believe that some of the higher-end designer things, certain fragrances, cosmetics, that kind of stuff will be excluded. Some things might be transferred out to the stores that are staying open. Supposedly the closing will be complete in May, end of May, so this will be some time in coming. From what we've seen at other stores, you can expect 20 to 30% off of things, and then as it gets closer to the true closing date, prices will get slashed more. So I would say go sooner rather than later, see what you see. If there's stuff you love and you're like, I want to get it. In terms of Saks Global being online, shopping at other stores, what I would say we're seeing and that you could expect to see is that there will not be a ton of new product, new breadth and depth in their buy, because basically when they're going through this restructuring, they are leaving a lot of their vendors hanging. With outstanding money that they owe. For sure, smaller designers and smaller brands are having a hard time with it. Larger brands may still choose to sell to them, but they are going to be more conscientious about selling to them because they don't know if they'll get paid. So it's not great, but it's great for other stores that are still open. It's a great way to shop directly with brands. It's a great way to shop local and support local boutiques. And it's a great way to, if you're having a hard time, to work with a personal stylist because we know the landscape. We can help you navigate it. And you might have had a go-to salesperson at a Saks, and that's what you always went and did, but now you might need advice to shop at multiple stores. So that's kind of what I have to say about it. I'd love to know your thoughts, what you're seeing, what you're hearing. Let me know. Hope this was helpful. Thank you. Bye.
