MISSION VIEJO, CA-Retailer Saks Inc. has granted a reprieve to its 100,000-sf Saks Fifth Avenue store here, but a 47,000-sf location in Palos Verdes is still slated for closing on May 13. Saks in October had announced that it planned to close both stores, but it said Monday that the Mission Viejo store will remain open.
The New York City-based retailer said in its October announcement that it planned to divest both locations, both of which are leased. The Mission Viejo store is at 27000 Crown Valley Parkway and the Palos Verdes store at the Avenue of the Peninsula shopping center.
Steve Sadove, CEO of Saks Inc., says that after further analyzing the operations at the Mission Viejo location, the company concludes that "the Mission Viejo store can achieve our profitability standards if appropriate resources are dedicated to this location."
The continuation of the Mission Viejo store and the closing of the Palos Verdes site follow a previously announced Saks strategy that involves focusing its capital, inventory and other resources on its most productive units. The company will record charges of $2 million for the Palos Verdes closing that primarily will consist of lease termination, inventory write-down and severance costs.
The Palos Verdes store, which opened in 1999, employs about 60 workers. The company says it will offer transfer opportunities or severance packages to the employees.
In addition to its 55 Saks Fifth Avenue stores, Saks operates 50 Saks Off 5th stores, Saks.com, 38 Parisian stores and 60 Club Libby Lu specialty stores.
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