Saks OFF 5TH Shutters Majority of Stores in Strategic Pivot Following Bankruptcy
Luxury Retailer Makes Deep Cuts to Off-Price Chain in Restructuring Move
NEW YORK – In a decisive move to streamline operations after its parent company's bankruptcy filing, Saks Global Enterprises announced it will close the vast majority of its Saks OFF 5TH off-price stores and all remaining Last Call locations. The move signals a sharp strategic retreat from the competitive off-price sector to concentrate resources on its flagship luxury businesses.
The company confirmed that 23 Saks OFF 5TH stores will cease operations immediately, with an additional 34 locations concluding closing sales this past weekend. Only 12 stores—strategically located in key markets including New York, Florida, California, and Texas—will remain operational. (See the full list of closures here).
According to the announcement, the surviving stores will primarily function as liquidation channels for excess inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman. Saks Global will halt direct merchandise purchases for the OFF 5TH chain, marking a fundamental shift in its business model.
"We are taking decisive steps to realign our business to better serve our luxury customers and drive full-price selling," stated Geoffroy van Raemdonck, CEO of Saks Global. "This positions us for the greatest long-term growth opportunities. We extend our sincere gratitude to our OFF 5TH and Last Call teams for their service."
Bankruptcy Backdrop and Sector Pressures
The restructuring follows the January Chapter 11 filing by Saks' parent company in a Texas bankruptcy court, triggered after it missed a $100 million interest payment. The luxury retail conglomerate, which also owns Neiman Marcus and Bergdorf Goodman following a complex acquisition loaded with approximately $2.2 billion in debt, has since secured about $1.75 billion in debtor-in-possession financing to support operations during reorganization.
Analysts view the store closures as an inevitable contraction. The off-price sector, once a growth engine, has become fiercely crowded with players like TJ Maxx and Nordstrom Rack. Saks' move suggests a retrenchment to its high-margin, full-price luxury roots where it holds stronger brand equity.
Voices from the Industry
We spoke to several retail analysts and shoppers for their perspective:
Michael Torres, Retail Analyst at Brandon Group: "This is a painful but necessary surgical cut. The capital was being spread too thin. Focusing on the core Saks, Neiman Marcus, and Bergdorf Goodman assets where the profitability is stronger is the only logical path forward out of Chapter 11."
Eleanor Shaw, Longtime Saks OFF 5TH Customer in Chicago: "I'm heartbroken. This was my go-to for finding designer pieces without the insane markup. It feels like another accessible luxury door is slamming shut. What happens to all the employees?"
David Chen, Former Department Store Executive: "It's a damning indictment of their off-price strategy. They never achieved the scale or supply chain efficiency to compete. This debt-laden acquisition was a house of cards from the start. Van Raemdonck is now salvaging what he can by retreating to the luxury bunker."
Rebecca Martinez, Fashion Blogger: "The landscape is polarizing. The true luxury market remains robust, but the 'aspirational' middle is vanishing. Saks is choosing its side clearly. For bargain hunters, it's a significant loss."
This report includes information from Saks Global, court filings, and industry analysis.