Saks Off 5th to Close Most Stores amid Bankruptcy Cost-Cutting Efforts

Saks Off 5th is set to close the majority of its stores as part of Saks Global’s cost-cutting and restructuring efforts resulting from a recent bankruptcy filing. The company announced it would shut down all but 12 of its 70 locations, aiming to focus on more profitable operations catered to higher-income consumers.

Saks Global’s Strategic Shifts

With significant plans for transformation, Saks Global has outlined its intent to realign its business model. The remaining outlets for Saks Off 5th will predominantly serve as channels for residual inventory from its luxury brands, including Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.

Bankruptcy and Store Closures

The announcement comes after Saks filed for Chapter 11 bankruptcy protection earlier this month. CEO Geoffroy van Raemdonck emphasized the company’s commitment to luxury consumers, reiterating their strategy to enhance full-price selling across their core luxury brands.

• Saks Off 5th will operate only 12 out of 70 locations.
• Going-out-of-business sales will start at select locations, pending bankruptcy court approval.
• Saks will cease operations of Saksoff5th.com.

Sales and Promotions

Beginning Saturday, select Saks Off 5th locations will initiate significant markdowns, aligning with the overall liquidation strategy. The online platform started promotions displaying discounts of up to 85% on various merchandise.

Historical Context and Challenges

Saks has its roots dating back to 1924 when it opened its first store in New York City. Following rapid expansion during the late 20th century, Saks was acquired by Hudson’s Bay in 2013. However, like many traditional retailers, Saks has faced difficulties in adapting to the growing e-commerce landscape.

Financial Pressures

The company also grapples with heavy debt following its acquisition of Neiman Marcus for $2.65 billion in 2024. The retail sector has seen a significant decline, with over 8,100 store closures across the U.S. in 2025, marking a 12% increase from the previous year, according to Coresight Research.

Saks Global’s move to scale back its store presence reflects a broader trend among retailers facing the challenges of a changing market landscape. The focus now shifts toward revitalizing its luxury offerings and improving overall financial health.