Saks Off 5th Shutters Dozens of Stores in Bankruptcy-Driven Restructuring
In a sweeping restructuring move following its Chapter 11 filing, Saks Global announced Thursday it will shutter the majority of its Saks Off 5th and Last Call off-price stores, marking a significant contraction for the discount arm of the luxury retail conglomerate.
The decision will see 62 of the 74 Saks Off 5th stores across the U.S. close their doors permanently. The remaining 12 locations, scattered across states including New York, Florida, and Texas, will transition primarily to clearance outlets for existing inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, rather than stocking new merchandise.
Liquidation sales are set to begin immediately, with some stores launching markdowns this Saturday. Final closures for the initial wave are expected as soon as Monday. The company stated that gift cards will be honored in stores through February 14, while store credit card rewards will be accepted until March 1.
"We are taking decisive steps to realign our business to better serve our luxury customers and drive full-price selling across our core luxury businesses," said Geoffroy van Raemdonck, CEO of Saks Global, in a statement. The move underscores a strategic pivot away from the fiercely competitive off-price market, where giants like TJX Companies (TJ Maxx, Marshalls) and Nordstrom Rack dominate.
The store closures follow Saks Global's bankruptcy filing earlier this month, a move precipitated in part by a missed $100 million interest payment related to its ambitious $2.65 billion acquisition of Neiman Marcus last year. The period leading up to the filing was marked by executive turmoil, with CEO Marc Metrick departing on January 2 and his interim successor, Executive Chairman Richard Baker, exiting less than two weeks later.
Notably, the company's flagship luxury stores—Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman—along with their e-commerce platforms, continue to operate normally. The separate SaksOff5th.com website will begin winding down with online clearance sales starting Friday.
Voices from the Shoppers:
"This is a real loss for savvy shoppers," said Michael Torres, a marketing executive from Chicago. "Off 5th was my go-to for finding designer pieces without the designer markup. It filled a specific niche that the mainline stores don't. The retail landscape is getting more homogenized."
"It's corporate malpractice, plain and simple," argued Lisa Chen, a retail analyst based in New York, her tone sharp. "This bankruptcy stems from a reckless acquisition spree loaded with debt, and now regular employees and loyal customers are paying the price. They over-leveraged themselves buying Neiman Marcus, and the off-price segment—and its workers—are the first casualty. It's a classic case of Wall Street gambling with Main Street assets."
"I'm not entirely surprised," noted David Reynolds, a longtime Saks credit card holder from Florida. "The Off 5th stores felt increasingly disconnected from the luxury experience of the main brands. This consolidation might help Saks Global survive, but it certainly narrows options for consumers looking for accessible luxury."