Neiman Marcus Group, streamlining operations through its bankruptcy process, has determined that it will close four of its luxury department stores including the Hudson Yards location, as well as 17 Last Call outlets.
The other three department stores that will close are in Bellevue, Wash.; Palm Beach, Fla., and Fort Lauderdale, Fla.
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The four department store closings and 17 Last Call closings were listed in court documents indicating leases that are being assumed or rejected.
It’s possible there will be additional store closings determined in the future. Neiman’s has been working with A&G Real Estate Partners to market the Neiman Marcus department stores in Walnut Creek, Calif., and Mazza Gallerie in Washington, D.C., along with the Palm Beach and Bellevue units.
The Neiman Marcus Group includes 42 Neiman Marcus department stores and two Bergdorf Goodman emporiums, as well as 22 Last Call outlets.
Neiman’s has for awhile been in talks with Related Companies., co-developer of Hudson Yards, on replacing the Neiman Marcus space with Facebook offices. Facebook is already a major tenant at Hudson Yards.
Neiman’s assessment of stores involves ways to monetize locations and not necessarily close them. Decisions would depend on Neiman’s outlook on the stores, their profitability, bankruptcy proceedings and negotiations with landlords.
Neiman’s filed for Chapter 11 bankruptcy on May 7. Bankruptcy enables retailers to get out of leases without penalty.
Sources have cited Neiman’s downtown Dallas, St. Louis; Natick, Mass., and Westchester, N.Y., as units that could be candidates for closure.
The Neiman Marcus Group also includes the Mytheresa and Horchow direct-to-consumer businesses.