Major Luxury Discount Retailer To Close VA Store

Saks Global announced Tuesday that it plans to close eight Saks Fifth Avenue stores, including one in Virginia, as the retail empire moves through Chapter 11 bankruptcy proceedings. The company will also close one Neiman Marcus location.

The announcement marks the latest round of closures as Saks Global works to "sharpen its focus on luxury retail and full-price selling across its iconic portfolio," according to an earlier statement.

The Virginia Saks Fifth Avenue store slated for closure this spring is located at Stony Point Fashion Park in Richmond. As of Wednesday, the store at Tysons Galleria in McLean was not expected to close.

Saks Fifth Avenue locations in Alabama, Ohio, New Jersey, Louisiana, Pennsylvania, Arizona and Oklahoma are also scheduled to close their doors. The Neiman Marcus location affected by the closures is located in Massachusetts.

Starting this weekend, the company will also close 14 locations of its Fifth Avenue Club personal shopping services. Only two will remain in operation. Additionally, Saks Global announced on Jan. 29 that it would close most of its Saks Off 5th stores.

Saks Global said the closures are part of the business's effort to refine its store footprint and focus on its more profitable locations.

"The company remains committed to serving customers in markets without a physical presence through its online and remote selling services to deliver the luxury assortments and service they expect no matter how they choose to engage," Saks Global said in a statement.

Last month, Saks Global said it was seeking bankruptcy protection, buffeted by rising competition and the massive debt it took on to buy its rival in the luxury sector, Neiman Marcus, just over a year ago.

But the acquisition only added to an already onerous debt at Saks as luxury sales weakened. Saks was having trouble paying suppliers before, and by last year, it began to stretch out payment periods, angering brands and fraying relationships.

According to the bankruptcy filing, the company listed $1 billion to $10 billion in assets and liabilities.

The Associated Press contributed reporting