Saks Global announced Thursday that, after filing for bankruptcy this month, its off price arm will be largely wound down, with 57 Saks Off 5th stores set to close and 12 locations remaining open, the company said.
The company also confirmed that all five Last Call clearance stores will close, and that the Saks Off 5th e commerce operation will be discontinued, with saksoff5th.com commencing a wind down and an online closing sale, the company said.
Closing sales for select Off 5th stores begin January 31 and all Last Call locations also start closing sales on that date, while the Saks Off 5th website will start its closing sale January 30, the company said on its website.
Saks Global said existing gift cards will be accepted in stores through Saturday February 14 and online through Friday February 13, according to the company website.
The company said the remaining Saks Off 5th stores will serve primarily as selling channels for residual inventory from Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, and it will move away from buying merchandise directly for the off price business.
Saksoff5th.com, which was split into a separate legal entity from Saks Global three years ago, will commence a wind down of operations, the company said, and the online closing sale will begin Friday.
Several Saks Off 5th sites will remain open, the company listed, including Gallery at Westbury Plaza in Garden City New York, Sawgrass Mills in Sunrise Florida and Woodbury Common Premium Outlets in Central Valley New York.
Financial Context And Possible Effects
Saks Global said the move is intended to sharpen its focus on luxury retail and full price selling, a strategy CEO Geoffroy van Raemdonck described as realigning the business to better serve luxury customers.
Van Raemdonck said the actions will position the company to invest where it sees the greatest opportunities for long term growth and value creation, the company statement said.
The company said liquidating much of Off 5th is needed to raise funds to pay debt that rose after its December 2024 acquisition of the Neiman Marcus Group for $2.7 billion, and from unpaid vendor bills, as reported by the company and press accounts.
Saks Global continues to access an initial $500 million tranche of $1.75 billion in committed capital to support operations and transformation initiatives, the company said.
Reports cited by the company and trade press said other stores in the portfolio could close, and trade reporting noted the downsizing may create opportunities for off price rivals to take former Off 5th locations.
