Saks OFF 5TH to Close Most Stores Amid Bankruptcy
Saks Global has announced a significant reduction of its Saks OFF 5TH store locations. This decision follows the company’s entry into Chapter 11 bankruptcy proceedings earlier this year. The restructuring plan will see the closure of 57 Saks OFF 5TH stores across the United States, leaving only 12 locations operational.
Saks OFF 5TH Store Closures
The upcoming closures come as Saks Global aims to refocus its business strategy. The company revealed that it would shutter all but 12 stores of its off-price retail brand. This includes the five locations of Last Call, a Neiman Marcus off-brand entity.
Details of Store Closures
- 57 Saks OFF 5TH stores will close.
- 23 stores will cease operations on February 2.
- Remaining 34 locations will begin closing sales on Saturday.
The 12 stores that will remain open are situated in select states, including:
- New York
- Florida
- New Jersey
- Georgia
- California
- Texas
Financial Challenges
Saks Global’s challenges became evident after acquiring Neiman Marcus in 2024, incurring over $2.5 billion in debt. The company’s financial difficulties have been exacerbated by changing shopping trends, with many consumers shifting towards online shopping.
Additionally, the brief resurgence in luxury retail following the pandemic has waned. A decline in Chinese consumer demand and shifting preferences among younger shoppers have further impacted sales.
Future Focus
With these closures, Saks Global plans to concentrate on luxury brands within full-price retail environments. The restructuring efforts aim to better position the company for long-term sustainability in the ever-evolving retail landscape.
