Saks Global to shutter most OFF 5TH locations
Saks Global has announced it will close all but 12 of its Saks OFF 5TH stores nationwide as part of its bankruptcy restructuring. The company will also wind down operations for Neiman Marcus’ off-brand entity, Last Call, closing its remaining five locations.
A total of 57 OFF 5TH stores will shut in the coming weeks. The company also confirmed that Saksoff5th.com will gradually cease operations. Saks Global has not disclosed how many jobs will be affected by the closures.
Chapter 11 bankruptcy allows restructuring
Saks Global filed for Chapter 11 bankruptcy on January 14, enabling it to restructure debt and negotiate with creditors rather than liquidate. After acquiring Neiman Marcus in 2024, the company faced over $2.5 billion in debt, which has contributed to its financial strain.
Challenges from changing retail trends
The decline of department stores and malls over the past decade, accelerated by the growth of online shopping, has compounded Saks Global’s challenges. A short post-pandemic boost in luxury retail ended in 2023 due to reduced demand from Chinese consumers and shifting priorities among younger shoppers.
The company says scaling back most off-price stores will allow it to focus on full-price luxury retail locations.
Timeline for closures
- 23 OFF 5TH stores will close their doors on Monday.
- The remaining 34 locations will hold closing sales starting Saturday and shut in the following weeks.
- The 12 stores that remain open are located in New York, Florida, New Jersey, Georgia, California, and Texas.
