In a reversal of its earlier decision, Saks Global will keep its Saks Fifth Avenue store on El Paseo in Palm Desert open, marking a significant shift in the company’s restructuring strategy as it stabilizes finances following its recent bankruptcy filing.
The Palm Desert store, located at The Gardens on El Paseo, had previously been slated for closure as part of a nationwide plan affecting 15 locations. But the company has now confirmed that Palm Desert is among the stores that will remain open as it refines its long-term retail footprint.
Financing and negotiations drive reversal
The decision comes days after Saks Global announced it had secured access to an additional $300 million in financing, completing a previously announced $1.75 billion capital package backed by bondholders.
The funding followed approval of the company’s five-year business plan by an ad hoc group of senior secured bondholders, giving Saks Global greater liquidity as it works through bankruptcy and positions itself for long-term growth.
“With continued strong support from our capital partners, we are laying the path to realize the combined full potential of our three banners,” CEO Geoffroy van Raemdonck said in a statement.
Industry analysts have pointed to improved liquidity and ongoing negotiations with landlords as key factors influencing whether previously targeted stores ultimately close or remain open. In high-value luxury corridors like El Paseo, favorable lease adjustments or revised terms can make continued operation more viable.
Palm Desert store deemed part of ‘go-forward’ portfolio
In updated company materials outlining its post-restructuring footprint, Saks Global identified Palm Desert as one of the Saks Fifth Avenue locations that will remain open following the previously announced closures.
The company said it has “largely completed the optimization” of its store network but will continue evaluating locations as conditions evolve.
The Palm Desert store’s inclusion in the go-forward portfolio signals its importance within Saks’ network of top-performing or strategically valuable luxury markets.
A key anchor on El Paseo
The Saks Fifth Avenue store at The Gardens on El Paseo spans roughly 50,000 square feet across two levels and has served as a central anchor in Palm Desert’s luxury retail corridor since the early 2000s.
Its presence has helped shape El Paseo into one of Southern California’s premier high-end shopping districts, alongside designer brands, galleries and upscale dining.
Keeping the store open preserves one of the corridor’s largest retail anchors at a time when many traditional department stores are shrinking their physical footprints.
Broader restructuring still underway
While Palm Desert has been spared, Saks Global continues to close multiple locations nationwide as part of its restructuring.
The company said its strategy is focused on maintaining stores in markets with strong concentrations of luxury customers while improving profitability through full-price selling and stronger brand partnerships.
Recent progress cited by the company includes:
- A significant increase in inventory flow, with nearly 600 brands resuming shipments
- Approximately $1.4 billion in merchandise receipts released as supply chains normalize
- Streamlining of distribution and supply chain operations
Local and regional implications
The reversal offers relief to employees and local businesses along El Paseo, where the store helps drive foot traffic and supports surrounding retailers. It also underscores the continued strength of the Coachella Valley’s luxury market, which draws affluent seasonal residents and international visitors.
Even so, Saks Global cautioned that it will continue reviewing its store portfolio and could make additional changes in the future.
For now, Palm Desert remains part of the company’s strategy – a sign that, despite industry pressures, El Paseo continues to hold value as a destination for luxury retail.
