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Saks OFF 5TH Stores to Shutter Nationwide Following Bankruptcy Filing
Saks Global has announced the widespread closure of its Saks OFF 5TH locations across the United States, a move that comes just weeks after the luxury retailer filed for bankruptcy.
A total of 23 Saks OFF 5TH stores are scheduled to cease operations on Monday, February 2nd. An additional 34 locations will commence closing sales this weekend. Following these closures, only 12 Saks OFF 5TH stores will remain open, situated in New York, Florida, New Jersey, Georgia, California, and Texas.
Geoffroy van Raemdonck, CEO of Saks Global, stated, “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.” He added that these actions will position the company “to seize the greatest opportunities for long-term growth and value creation.”
The company clarified that the remaining Saks OFF 5TH stores will primarily function as a selling channel for residual inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.
In a related development, saksoff5th.com, which operates as a separate legal entity, will begin winding down its operations with an online closing sale starting Friday, January 30th. Additionally, closing sales at certain Saks OFF 5TH stores and all remaining Nieman Marcus Last Call stores are set to begin Saturday, January 31st, pending chapter 11 process approvals.
Saks Global Enterprises, the parent company of Saks, filed for Chapter 11 bankruptcy protection in mid-January in the U.S. Bankruptcy Court for the Southern District of Texas. This filing followed the company’s default on a $100 million interest payment in December, contributing to mounting debt obligations.
Following the bankruptcy filing, Saks Global secured a financing commitment of approximately $1.75 billion, backed by senior secured bondholders and asset-based lenders, to support operations during its restructuring period.
The bankruptcy filing occurs approximately a year after Canada-based conglomerate Hudson’s Bay Co., the previous owner of Saks since 2013, completed its roughly $2.7 billion acquisition of Neiman Marcus Group in December 2024. This acquisition aimed to establish a larger luxury retail platform under the newly formed Saks Global Enterprises brand, with Saks Fifth Avenue’s parent company gaining ownership of Neiman Marcus and Bergdorf Goodman and spinning off its U.S. luxury assets. However, the acquisition necessitated Saks taking on approximately $2.2 billion in debt.