Saks Global has announced that the majority of its Saks OFF 5TH locations in the United States will now close, just weeks after filing for bankruptcy.
The luxury retailer said 23 of its Saks OFF 5TH stores will cease operations on Monday, February 2, while another 34 will maintain operations. close sale starting this weekend. Only twelve locations in New York, Florida, New Jersey, Georgia, California and Texas remain open.
“As we move forward in transforming Saks Global, we are taking decisive steps to realign our business to better serve our luxury customers and drive full-price sales across our core luxury businesses,” said Geoffroy van Raemdonck, CEO of Saks Global. said in one statement Thursday. “With these actions, we will be well positioned to capture the greatest opportunities for long-term growth and value creation.”
The company said the remaining Saks OFF 5TH stores will “primarily serve as a sales channel for remaining inventory of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.”
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People walk with their purchases in front of the Saks OFF 5TH store at the Woodbury Common Premium Outlets Mall in October 2017 in Central Valley, NY (Gary Hershorn/Getty Images/Getty Images)
“Subject to certain approvals in the Chapter 11 process, the company will begin closing sales at select Saks OFF 5TH stores and all remaining [Nieman Marcus] Last Call stores will begin on Saturday, January 31,” the company said. “In addition, saksoff5th.com, a separate legal entity from Saks Global, has determined that it will wind down its operations, with an online closing sale beginning on Friday, January 30.”
Saks’ parent company, Saks Global Enterprises, has filed for Chapter 11 bankruptcy protection in mid-January in the U.S. Bankruptcy Court for the Southern District of Texas after missing a $100 million interest payment in December, adding to mounting debt obligations.
Following the filing, Saks Global announced that it had secured a financing commitment of approximately $1.75 billion, backed by senior bondholders and asset-based lenders, to support operations during the restructuring.
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A Saks OFF 5TH location in West Palm Beach, Florida. (Jeff Greenberg/Education Images/Universal Images Group via Getty Images/Getty Images)
The bankruptcy filing comes about a year after Canada-based conglomerate Hudson’s Bay Co., which has owned Saks since 2013, completed its approximately $2.7 billion acquisition of Neiman Marcus Group in December 2024 to build out a larger luxury retail platform under the newly formed Saks Global Enterprises brand.
Saks Fifth Avenue’s parent company became owner of Neiman Marcus and Bergdorf Goodman and spun off its U.S. luxury assets.
A display at the Saks OFF 5TH store in West Palm Beach, Florida. (Jeff Greenberg/Education Images/Universal Images Group via Getty Images/Getty Images)
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However, to finance the acquisition, Saks took on approximately $2.2 billion in debt.
