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London, United Kingdom--Saks Global will remove 500 to 600 brands from its current portfolio as it restructures its vendor base, according to a report by the Daily Tribune. Executive chairman Richard Baker announced the cuts at the World Retail Congress in London, describing them as necessary after recent mergers increased the company’s vendor count to 2,660.

Per the report, Saks is shifting its focus to higher-margin, controlled brands, including those managed under its joint venture with Authentic Brands Group (ABG). The company aims for 20% of its sales to come from controlled brands such as Barneys New York, Judith Leiber Couture, Hervé Léger, and Vince.

ABG CEO Jamie Salter said that 20% of Saks’ $9 billion in annual gross merchandise value would translate to $1.8 billion from controlled brands. He stated that this shift could generate nearly $400 million in added value if Saks achieves a 25% higher margin on these products.

The report also noted that S&P Global has placed Saks’ “CCC-plus” credit rating on negative watch, citing concerns over liquidity and a $120 million interest payment due in June. Saks has engaged financial and legal advisors and is considering capital market options.

Baker said Saks’ partnership with Amazon ensures curated luxury products are offered on “gated” platforms in multiple regions, including India, Japan, the UK, Europe, and the Middle East. The report stated the company’s ABG partnership is also expanding into entertainment and hospitality, with new projects in Mexico and the Asia-Pacific region.

Baker said Saks will continue consolidating vendors and focusing on brand control as it expands globally.

Learn more in this report by The Daily Tribune.