Luxury retail conglomerate Saks Global has confirmed the impending closure of the majority of its off-price retail locations, marking a significant contraction in its physical store portfolio. The parent company of prestigious brands including Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman announced that most Saks Off 5th and Last Call stores will shutter permanently.
Widespread Store Closures Announced
In a statement released via Instagram, Saks Global revealed that only 12 of the 74 Saks Off 5th and Last Call stores nationwide will remain operational. The company indicated that these select locations will participate in closing sales over the coming weeks to liquidate existing inventory.
Strategic Shift in Off-Price Operations
The remaining dozen stores will serve a specific purpose rather than functioning as traditional retail outlets. According to the announcement, these locations will primarily focus on selling residual inventory from the company's luxury brands rather than stocking new merchandise. This represents a fundamental shift in the off-price division's operational model.
Bankruptcy Protection Triggers Restructuring
This dramatic downsizing follows Saks Global's filing for Chapter 11 bankruptcy protection earlier this month. The financial restructuring was triggered in part by a missed $100 million interest payment related to the company's 2024 acquisition of Neiman Marcus, which created significant debt obligations.
Core Luxury Operations Continue Unaffected
Despite the off-price division's contraction, Saks Global emphasized that its primary luxury operations will continue without disruption. Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman stores will maintain normal operations, along with their respective e-commerce platforms. The company's flagship luxury brands appear insulated from the off-price division's challenges.
Digital Transition for Off-Price Division
The company also announced that SaksOff5th.com will begin winding down operations as part of the broader restructuring. This suggests a complete re-evaluation of the off-price business model across both physical and digital channels, with the company potentially exiting the discount luxury segment entirely.
The announcement represents one of the most significant retail contractions in recent years, affecting dozens of locations across the United States and signaling potential challenges in the luxury off-price market segment.
