Bankrupt Saks Global confirmed Thursday that it’s winding down the majority of its off-price operations, including discontinuing Saks Off 5th e-commerce and closing down most Saks Off 5th stores.
Fifty-seven Saks Off 5th stores will be closing, leaving just 12 standing. Thirty-four starting their closing sales on Saturday, and the other 23 locations start their closing sales on Feb. 2.
Last Call, the clearance outlet for Neiman Marcus, is also seeing its last days, with all five set to close.
Related Articles
The Saks Off 5th e-commerce operation and the Off 5th brick-and-mortar stores were split into separate companies three years ago.
You May Also Like
In its announcement, Saks Global said the purpose of the downsizing was to “sharpen its focus on luxury retail and full-price selling.” The company also said the shutdowns were subject to final bankruptcy court approval.
“These actions are part of the company’s ongoing evaluation of its operational footprint to ensure it remains well-positioned to invest in areas that present the greatest opportunities for sustainable, profitable growth for its luxury retail brands and partners,” the company said in the statement.
The news confirms a report by WWD on Jan. 9 that around 50 Saks Off 5th stores would be closed. Liquidating the Saks Off 5th e-commerce operation and many of the Saks Off 5th stores is necessary because Saks Global needs to raise money to help pay its debt, which piled up as a result of its $2.7 billion acquisition of the Neiman Marcus Group in December 2024 — and from unpaid bills owed vendors for past shipments.
The decision raises the possibility that ultimately Saks Off 5th completely disappears from the retail landscape. The Off 5th business has been beset over the years by several changes in management, merchandising and pricing strategies. The brand has suffered huge losses. Estimates on how much the stores and online operations generate combined range up to $400 million to $500 million, but years ago, the offprice brand generated $1.1 billion in volume.
It’s also likely that other stores in the Saks Global portfolio will close, including certain Saks Fifth Avenue and Neiman Marcus stores, as previously reported by WWD.
The downsizing of Saks Off 5th provides an opportunity for other off-pricers, such as Nordstrom Rack and T.J. Maxx, to grab some more locations.
Select Saks Off 5th stores will remain open to serve primarily as a selling channel for residual inventory from Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman. As such, Saks Global will move away from purchasing merchandise directly for Saks Off 5th.
Saksoff5th.com, which is a separate legal entity from Saks Global, will commence a wind-down of its operations, with an online closing sale beginning Friday.
“As we advance on Saks Global’s transformation, 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,” Geoffroy van Raemdonck, chief executive officer of Saks Global, said in a statement. “With these actions, we will be well-positioned to seize the greatest opportunities for long-term growth and value creation. We sincerely thank our Saks Off 5th and Last Call colleagues for the important role they have played in serving our loyal customers.”
The company continues to access the initial tranche of $500 million of $1.75 billion in committed capital to support operations and transformation initiatives across its portfolio, including facilitating go-forward payments to brand partners and the acceleration of inventory flow across its full-price retail brands.
Here, the Saks Off 5th and Last Call closings and closing sales.
Saks Off 5th locations closing as of Feb. 2: Mebane, N.C.; Charleston, S.C.; Grand Prairie, Texas; Ala Moana, Honolulu; Petaluma, Calif.; Glendale, Ariz.; Tucson, Ariz.; Merrimack, N.H.; Riverhead, N.Y.; Clinton, Conn.; North Atlanta in Woodstock, Ga.; Aurora, Ill.; Dallas Park; Northbrook, Ill.; Eagan, Minn.; Columbus, Ohio; San Diego; Camarillo, Calif.; Ontario; Milpitas, Calif.; State Street, Chicago; Stamford, Conn.; Greenburgh, N.Y.
Saks Off 5th locations holding closing sales starting Jan. 31: Arundel in Hanover, Md.; Honolulu; Palm Desert, Calif.; Scottsdale, Ariz.; Chandler, Ariz.; Eastchester, N.Y.; Bridgewater, N.J.; Clarksburg, Md.; Deer Park, N.Y.; Shrewsbury, N.J.; Elizabeth, N.J.; Somerville, Mass.; Wrentham, Mass.; Orlando Vineland in Orlando; Naples Park Shore in Naples, Fla.; Orlando; Lutz, Fla.; Ellenton in Tampa; Destin, Fla.; Charlotte, N.C.; Woodstock, Ga; Hilton Head in Bluffton, S.C.; Rosemont, Ill.; Cypress, Texas; Sugarland, Texas; Katy, Texas; Costa Mesa, Calif.; Beverly Connect in Los Angeles (West), Calif.; Woodland Hills, Calif.; Las Vegas; Livermore, Calif.; San Antonio, Texas; Cabazon, Calif.; Las Vegas South.
Saks Off Fifth locations remaining open: Gallery at Westbury Plaza in Garden City, N.Y.; Sawgrass Mills in Sunrise, Fla.; Woodbury Common Premium Outlets in Central Valley, N.Y.; Bergen Town Center in Paramus, N.J.; Town Center Aventura in Aventura, Fla.; Buckhead Station in Atlanta; Miromar Outlets in Estero, Fla.; Somerset Shoppes in Boca Raton, Fla.; The Outlets at Orange in Orange, Calif.; Dolphin Mall in Miami; Palm Beach Outlets in West Palm Beach, Fla.; Grapevine Mills in Grapevine, Texas.
Last Call locations holding closing sales: Sawgrass Mills in Sunrise, Fla.; Desert Hills Premium Outlets in Cabazon, Calif.; Grapevine Mills in Grapevine, Texas; San Marcos Premium Outlets in San Marcos, Texas; The Outlets at Orange in Orange, Calif.