In a significant blow to the UK's retail landscape, luxury conglomerate Saks Global has confirmed the imminent closure of the majority of its Saks Off 5th and Last Call off-price retail locations. This drastic move follows the parent company's recent filing for Chapter 11 bankruptcy protection, a decision precipitated in part by financial pressures including a missed $100 million interest payment.
Widespread Store Closures Announced
The restructuring plan will see over 60 stores shutter across the nation, with only 12 of the original 74 Saks Off 5th outlets remaining operational. These surviving locations will primarily serve to liquidate residual inventory from the company's prestigious luxury brands, including Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, rather than stocking new merchandise for sale.
Immediate Implementation and Customer Impact
Store closures are set to commence immediately, with some locations beginning markdown sales as early as Saturday. Others are scheduled to close their doors by Monday, creating a rapid timeline for the wind-down. Customers holding gift cards are advised that these will remain valid until 14 February, while store credit rewards can be used until 1 March, providing a limited window for final purchases.
Importantly, the core luxury brands under the Saks Global umbrella will continue to trade as normal. Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman stores, along with their respective online platforms, are not affected by these off-price closures. However, the SaksOff5th.com website will begin winding down its operations in alignment with the physical store closures.
Financial Background and Broader Context
The bankruptcy filing earlier this month was triggered by a complex financial situation, notably linked to the company's 2024 acquisition of Neiman Marcus. The missed interest payment highlights the ongoing challenges within the luxury retail sector, where even established players are navigating turbulent economic conditions and shifting consumer behaviours.
This development underscores a broader trend of restructuring within global retail, as companies seek to streamline operations and focus on core profitable segments. The closure of these off-price locations represents a strategic retreat, allowing Saks Global to concentrate resources on its flagship luxury stores and digital presence during a period of financial reorganisation.
