Saks addresses "false rumors," reiterates flagship Neiman Marcus store in downtown Dallas will close
Saks Global addressed "false rumors" on Thursday, reiterating that its iconic Neiman Marcus flagship store in downtown Dallas will not remain open.
In a news release, the company reaffirmed that the store will close on March 31, despite reports suggesting otherwise.
Ian Putnam, CEO of Saks Global Properties and Investments, said claims of the store remaining open are deceptive.
"The claims that the store will remain open are misleading for the Dallas community, our store employees and our brand partners," Putnam said. "Saks Global inherited this lease issue from Neiman Marcus' previous owners and worked in good faith to come to an agreement with the landlord, who chose to terminate our occupancy."
Putnam acknowledged the efforts of The Dallas Consortium for the Downtown Neiman Marcus, which was formed to save the flagship store, "particularly given the slow resurgence of the downtown Dallas area over the last several years."
He added that Saks Global is "willing to hear their perspective. However, we have to make decisions as a business about what's best for the future and our long-term success in Dallas and beyond."
According to the company, efforts to reach a fair agreement with landlord Slaughter Partners since 2011 have been unsuccessful.
"From as early as 2011 and as recently as December 2024, there have been several attempts to come to a commercially reasonable agreement with one of the Downtown store landlords, Slaughter Partners (Slaughter)," Saks Global said in the release.
According to Saks Global:
- In November 2024, NMG leadership sought assistance from the City of Dallas, but efforts to negotiate the lease failed.
- NMG leadership attempted to purchase the land from Slaughter Partners, but no price was offered.
- Slaughter Partners terminated Neiman Marcus' occupancy when the lease expired.
"To date, Saks Global has not received any documentation regarding an agreement between Slaughter Partners and the City of Dallas, and how this new agreement would affect the property, its other owners, and the store's ability to operate," Saks Global said.
The idea of a philanthropic lease emerged after the landlord's unsuccessful attempts to increase rent, according to the company.
"Additionally, the suggestion to make the lease philanthropic versus commercial only became an option after Slaughter's attempts to increase rent were unsuccessful," the company said. "In fact, during negotiations, the landlord demanded rent well above market rates while knowing that without this particular lease agreement, Neiman Marcus would be unable to operate the store."
Marc Metrick, CEO of Saks Global Operating Group, emphasized the importance of the NorthPark store and its upcoming $100 million renovation.
"Dallas continues to be a top market for the Neiman Marcus brand," Metrick said. "Based on customer data, we know that the overwhelming majority of our Dallas customer base prefers to shop at our NorthPark store.
"We look forward to the $100 million renovation of this location, enabling us to offer a new level of luxury fashion and service at one of our premier store locations. We know that the local community shares in our disappointment about losing a piece of Neiman Marcus history, but customers have expressed their excitement about the reimagination of NorthPark."
Meanwhile, the company said transfer opportunities and separation packages have been offered to impacted employees who are eligible.