URGENT UPDATE: Saks Global has just announced the impending closure of 57 Saks OFF 5TH stores nationwide as part of a significant restructuring effort amid ongoing bankruptcy proceedings. This decision comes as the luxury retail giant grapples with over $2.5 billion in debt following its acquisition of Neiman Marcus in 2024.
The closures will begin with 23 locations shutting their doors on February 2, while 34 additional stores will start liquidation sales on January 31 and aim to close within weeks. These developments mark a drastic reduction in operations for the company, which will retain only 12 Saks OFF 5TH stores across the country.
Authorities confirm that the closures are part of a larger trend affecting luxury retail, as brick-and-mortar stores continue to struggle in the wake of a decade-long shift towards online shopping. Saks Global’s decision to file for Chapter 11 bankruptcy on January 14 allowed the company to negotiate with creditors and restructure its business model, focusing more on high-end luxury brands.
The impact of these closures extends beyond the retail landscape; it raises concerns about job losses, although Saks Global has not disclosed specific figures regarding employment effects across its brands. The shuttering of the last five locations of Neiman Marcus’s discount brand, Last Call, adds further weight to the challenges faced by Saks Global.
As the retail environment evolves, industry experts suggest that Saks Global’s strategy to scale back its off-price operations is a necessary move to refocus on its luxury offerings. The company aims to adapt to changing consumer behaviors and preferences, seeking to remain viable in a competitive market.
Consumers and employees alike are urged to stay informed as the situation develops. The urgency of these closures will likely resonate with shoppers, prompting immediate action as liquidation sales begin. The future of Saks OFF 5TH remains uncertain, leaving many to wonder what this means for the luxury retail sector as a whole.
Stay tuned for more updates on this developing story.
