Neiman Marcus is not going out of business in 2026, but it is undergoing a significant restructuring under Chapter 11 bankruptcy.
While one flagship store in Boston is closing and all Last Call outlet stores are shutting down, the brand itself continues to operate with 35 full-line stores remaining open across the United States.
Here are the key facts you should know:
- Saks Global, the parent company, filed for Chapter 11 bankruptcy in January 2026.
- One Neiman Marcus store, Copley Place in Boston, is closing permanently.
- All Neiman Marcus Last Call clearance centers are shutting down.
- 35 Neiman Marcus full-price luxury stores will remain open.
- The restructuring focuses on profitability, debt reduction, and long-term survival.
If you’re wondering whether this marks the end of an iconic luxury retailer, the answer is more nuanced than headlines suggest.
What Is Neiman Marcus?
Neiman Marcus is one of America’s most recognisable luxury department store brands. Founded in 1907 in Dallas, Texas, it built a reputation for high-end fashion, designer labels, exclusive merchandise, and personalised service, attracting affluent shoppers seeking premium retail experiences.
Before its 2024 merger with Saks Fifth Avenue, the company operated as Neiman Marcus Group, which also included Bergdorf Goodman and Horchow.
It faced financial challenges, including a Chapter 11 bankruptcy in 2020 that helped reduce debt and streamline operations.
As online competition grew and shopping habits shifted, maintaining large store footprints became costly.
In December 2024, Saks Global acquired Neiman Marcus for about $2.7 billion, creating a luxury powerhouse but introducing new financial pressures heading into 2026.
Is Neiman Marcus Going Out of Business in 2026 or Just Restructuring?
If you’ve searched “is Neiman Marcus going out of business,” you’ve likely encountered alarming headlines. However, the reality is that Neiman Marcus is restructuring, not liquidating.
In January 2026, Saks Global filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. Chapter 11 allows a company to reorganize its finances while continuing operations.
It is not the same as Chapter 7 liquidation, which involves permanently closing all stores and selling assets.
As Saks Global stated during its announcement:
“We are initiating a series of actions to reinforce Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman as the ultimate destinations for luxury.”
This signals a strategic reset rather than a shutdown.
The restructuring involves:
- Closing underperforming stores
- Reducing debt burden
- Streamlining operations
- Refocusing on profitable full-price locations
After the announced closures, Saks Global will operate 35 Neiman Marcus stores and 25 Saks Fifth Avenue locations, along with two Bergdorf Goodman stores.
The brand continues to function, both in physical stores and online.
Why Did Saks Global File for Chapter 11 Bankruptcy in 2026?
Saks Global’s bankruptcy filing stems primarily from debt accumulated after its 2024 acquisition of Neiman Marcus. The merger was ambitious, but it left the combined entity carrying approximately $4.7 billion in total debt.
Acquisition Debt and Financial Strain
The $2.7 billion acquisition required substantial borrowing. Once the transaction closed, the company struggled to manage interest payments while also maintaining inventory and operations.
In December 2025, Saks Global reportedly missed a $100 million interest payment, a key trigger for its Chapter 11 filing.
Inventory and Vendor Disruptions
Financial instability affected vendor relationships. Some suppliers paused shipments due to delayed payments, leading to inventory shortages. When shelves appear sparse in luxury retail, customer traffic can decline quickly.
A restructuring advisor reportedly described the situation as creating “immediate liquidity challenges” and an “unsustainable capital structure.”
Broader Industry Pressures
Luxury department stores face structural challenges:
- Increased online luxury shopping
- Reduced mall foot traffic
- Rising inflation and tariff pressures
- Competition from direct-to-consumer designer brands
As one retail analyst noted:
“Saks Global did not fail because department stores are broken, it failed because it broke its own business model.”
The bankruptcy aims to stabilize operations while reducing debt and optimizing store footprints.
Which Neiman Marcus Stores Are Closing in 2026?
Only one full-line Neiman Marcus store is closing as part of this initial restructuring phase, the Copley Place location in Boston, Massachusetts.
Confirmed Neiman Marcus Store Closure
The store located at 5 Copley Place will remain open until the end of April 2026. A closing sale is expected to begin in February and conclude before the final shutdown date.
Store Closing Timeline
| Location | State | Closing Sale Begins | Final Closure Date |
| 5 Copley Place, Boston | Massachusetts | February 2026 | End of April 2026 |
This location represented the only Neiman Marcus department store in Massachusetts. Its closure is highly visible, which partly explains the surge in “going out of business” rumors.
Copley Place has already announced redevelopment plans for the space, including luxury retail expansions and new dining options. Construction is expected to begin later in 2026, with phased openings projected through 2028.
Importantly, no other Neiman Marcus flagship stores have been confirmed for closure at this time.
How Many Neiman Marcus Stores Will Remain Open After the Closures?
Following the Boston closure, 35 Neiman Marcus full-price stores will continue operating nationwide.
The restructuring primarily affects underperforming locations. According to Saks Global, the stores closing represent only a small, single-digit percentage of total annual gross merchandise value (GMV) and were collectively unprofitable.
Below is a simplified overview of the post-restructuring footprint:
| Brand | Stores Before Closures | Stores After Closures |
| Neiman Marcus | 36 | 35 |
| Saks Fifth Avenue | 33 | 25 |
| Bergdorf Goodman | 2 | 2 |
This indicates that Neiman Marcus remains a substantial component of Saks Global’s portfolio.
Are All Neiman Marcus Last Call and Outlet Stores Shutting Down?
Yes, all remaining Neiman Marcus Last Call outlet stores are closing as part of the restructuring.
Last Call served as the off-price clearance channel for Neiman Marcus. However, Saks Global is eliminating much of its outlet footprint, including:
- All five remaining Neiman Marcus Last Call stores
- The majority of Saks Off 5th locations
- The Off 5th e-commerce liquidation platform
This represents a strategic pivot away from discount retailing.
The company intends to focus on:
- Full-price luxury selling
- Elevated in-store experiences
- Stronger brand partner relationships
- Higher-margin merchandise
While outlet shoppers may feel the loss of Last Call, the closures are part of a broader effort to improve profitability and reduce operational complexity.
Why Are People Saying Neiman Marcus Is Shutting Down Completely?
Rumors that Neiman Marcus is going out of business entirely have spread quickly online. Several factors contribute to this perception.
Bankruptcy vs. Liquidation Confusion
Many consumers equate bankruptcy with permanent closure. However, Chapter 11 allows companies to reorganize while continuing operations.
High-Profile Store Closures
The Boston closure received national coverage. When a well-known luxury location shuts down, it often triggers broader speculation.
Vendor and Inventory Disruptions
Reports of vendor payment issues and limited inventory reinforced concerns. As one supplier representative described:
“This disruption in shipping has caused financial stress and production challenges.”
These developments created visible signs of instability, even though the company continues operating.
Ultimately, restructuring announcements can easily be misinterpreted as full liquidation, especially in today’s fast-moving news cycle.
What Happens to Gift Cards, Returns, and Online Orders?
For customers, one of the most pressing concerns is whether gift cards and returns remain valid.
The Boston location will accept gift cards and process returns according to company policy through its closing date. Saks Global has provided guidance online regarding exchanges and final sale procedures during liquidation events.
NeimanMarcus.com remains operational, and online orders continue to be fulfilled. The restructuring is not impacting the brand’s e-commerce operations in a way that prevents customers from shopping online.
Shoppers with Horchow purchases placed before February 19 will still have their orders honored and fulfilled without disruption.
What Is Happening to Horchow and Fifth Avenue Club Locations?
In addition to store closures, Saks Global is consolidating related businesses.
Horchow Website Transition
Horchow.com, the luxury home décor retailer acquired decades ago, is shutting down as a standalone website. Beginning February 19, customers are redirected to the home category on NeimanMarcus.com.
The company clarified:
“Nothing will change in terms of the Home offering that Horchow customers have come to expect.”
This consolidation reduces operational duplication while maintaining product availability.
Fifth Avenue Club Personal Styling Closures
Fourteen standalone Fifth Avenue Club styling suites are closing across multiple states. However, three locations will remain open in:
- Indianapolis
- Honolulu
- Palm Beach (new location opening fall 2026)
These changes reflect a strategy to serve customers through fewer, more productive luxury locations.
How Did the 2024 Saks–Neiman Marcus Merger Lead to Financial Trouble?
The merger between Saks Fifth Avenue and Neiman Marcus was intended to strengthen the luxury retail sector in the U.S. Instead, it created financial strain.
The acquisition added significant leverage. Combined with declining sales and operational challenges, debt servicing became increasingly difficult.
Saks Global secured approximately $1.75 billion in financing to support operations during restructuring. However, the underlying issue remains the debt burden created by the acquisition.
Retail analysts have pointed to the risks of debt-fueled consolidation in a changing market. Large department stores face high overhead costs, and combining two such entities did not eliminate structural challenges.
The merger did create scale, but scale alone was insufficient to offset declining foot traffic and competitive pressures.
Could Neiman Marcus Close More Stores in the Future?
At present, only one Neiman Marcus store closure has been confirmed. However, speculation remains that additional closures could occur depending on the outcome of the bankruptcy proceedings.
Chapter 11 gives Saks Global time, but not unlimited time. The company must demonstrate that its streamlined footprint can generate sustainable profitability.
Potential future scenarios include:
- Emerging as a smaller but stable luxury operator
- Selling certain assets
- Further optimizing store locations based on lease economics
Still, the company has emphasized that opportunities in the luxury market remain strong.
“Opportunities within the luxury market remain strong, and Saks Global is primed to play a distinct, enduring role within the industry.”
For now, Neiman Marcus remains operational, with 35 stores continuing to serve customers nationwide.
Conclusion
To reiterate, Neiman Marcus is not going out of business in 2026. Instead, it is undergoing a Chapter 11 restructuring under Saks Global, closing select underperforming stores and all Last Call outlets while preserving 35 full-price luxury locations.
The restructuring reflects broader changes in the luxury retail industry, including digital competition, evolving consumer habits, and financial pressures from acquisition debt.
For shoppers, the brand continues to operate both in stores and online. For the industry, the situation serves as a case study in the risks of debt-heavy expansion during a period of retail transformation.
While uncertainty remains, Neiman Marcus is restructuring, not disappearing.
Frequently Asked Questions
Will Neiman Marcus continue operating online after the restructuring?
Yes. NeimanMarcus.com remains fully operational, and customers can continue shopping online. The restructuring focuses primarily on physical store optimization and debt management.
Are employees being laid off due to store closures?
While specific numbers have not been disclosed, some employees are being offered transfer opportunities where available. Job impacts vary by location.
Is Bergdorf Goodman affected by the bankruptcy?
No. Both Bergdorf Goodman stores in New York City remain open and are not part of the announced closures.
What is the difference between Chapter 11 and liquidation?
Chapter 11 allows a company to reorganize its finances while continuing operations. Liquidation (Chapter 7) involves permanently shutting down and selling assets.
Did Neiman Marcus previously file for bankruptcy?
Yes. Neiman Marcus filed for Chapter 11 bankruptcy in 2020 during the pandemic and later emerged after restructuring its debt.
Are Saks Fifth Avenue stores closing too?
Yes. Eight Saks Fifth Avenue stores in multiple states are closing, leaving 25 locations remaining.
How does this impact luxury shopping malls?
When anchor tenants like Neiman Marcus close, malls may experience reduced foot traffic. However, some properties, like Copley Place, are replacing closed stores with new luxury brands and dining concepts.
