Many Saks OFF 5TH locations are closing nationwide following the bankruptcy filing
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Saks Global announced the majority of its Saks OFF 5TH locations across the United States will be closing, just weeks after filing for bankruptcy.
The luxury retailer said its 23 Saks OFF 5TH stores will cease operations on Monday, Feb. 2, and the other 34 will cease to operate. to close the sale starting this weekend. Only 12 locations in New York, Florida, New Jersey, Georgia, California and Texas will remain open.
“As we move forward with Saks Global’s transformation, we are taking significant steps to realign our business to better serve our luxury customers and drive full-scale sales across our flagship businesses,” said Geoffroy van Raemdonck, CEO of Saks Global. he said to statement Thursday. “Through these actions, we will be well positioned to capitalize on the greatest opportunities for long-term growth and value creation.”
The company said the remaining Saks OFF 5TH stores “will serve primarily as a channel to sell leftover merchandise from Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.”
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People walk with their purchases in front of the Saks OFF 5TH store at Woodbury Common Premium Outlets Mall in October 2017 in Central Valley, NY. (Gary Hershorn/Getty Images/Getty Images)
“Pending certain approval of the chapter 11 process, the Company will begin closing sales at certain Saks OFF 5TH stores and all remaining stores. [Nieman Marcus] Last Call stores beginning Saturday, January 31,” it also said. “Additionally, saksoff5th.com, a separate legal entity from Saks Global, has decided to begin closing its operations, closing online sales beginning Friday, January 30.”
Saks’ parent company, Saks Global Enterprises, has filed for Chapter 11 bankruptcy protection in mid-January in the US Bankruptcy Court for the Southern District of Texas after missing a $100 million interest payment in December, adding to the growing debt obligations.
After the filing, Saks Global announced that it received a financial commitment of approximately $1.75 billion, backed by senior secured bondholders and asset-backed lenders, to support operations during the restructuring.
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The Saks OFF 5TH location in West Palm Beach, Fla. (Jeff Greenberg/Educational Images/Worldwide Image Group via Getty Images/Getty Images)
The bankruptcy filing comes a year after Hudson’s Bay Co. of Canada, which has owned Saks since 2013, completed its purchase of Neiman Marcus Group for an estimated $2.7 billion in December 2024 to create a large high-end retail platform under the newly formed Saks Global Enterprises brand.
Saks Fifth Avenue’s parent company acquired ownership of Neiman Marcus and Bergdorf Goodman and divested its US luxury brands.
A display inside the Saks OFF 5TH store in West Palm Beach, Fla. (Jeff Greenberg/Educational Images/Worldwide Image Group via Getty Images/Getty Images)
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However, in order to finance the acquisition, Saks took on approximately $2.2 billion in debt.
FOX Business’ Daniella Genovese, Ashley Carnahan and Reuters contributed to this report.
