Nationwide Closure of Saks OFF 5TH Locations After Bankruptcy Filing
FOX Business’ Lauren Simonetti joins ‘Mornings with Maria’ to report on how artificial intelligence is transforming the retail shopping experience.
Saks Global has announced significant changes, revealing that most Saks OFF 5TH locations across the United States will be closing shortly after a bankruptcy filing. This decision marks a pivotal shift in the luxury retail landscape.
The luxury retailer disclosed that 23 Saks OFF 5TH stores will shut down on Monday, February 2. Additionally, another 34 locations will initiate closing sales starting this weekend. Only 12 stores will remain operational, located in New York, Florida, New Jersey, Georgia, California, and Texas.
“As we advance on Saks Global’s transformation, we are taking decisive steps to realign our business to better serve our luxury customers and drive full-price selling across our core luxury businesses,” stated Geoffroy van Raemdonck, CEO of Saks Global, in a statement released on Thursday. “With these actions, we will be well positioned to seize the greatest opportunities for long-term growth and value creation.”
The remaining Saks OFF 5TH stores are expected to primarily function as a selling channel for leftover inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.
SAKS GLOBAL FILES FOR BANKRUPTCY AFTER $2.7 BILLION NIEMAN MARCUS ACQUISITION DEAL
People walk with their purchases in front of the Saks OFF 5TH store at the Woodbury Common Premium Outlets Mall in October 2017 in Central Valley, N.Y. (Gary Hershorn/Getty Images / Getty Images)
“Subject to certain approvals in the chapter 11 process, the Company will commence closing sales at certain Saks OFF 5TH stores and all remaining [Nieman Marcus] Last Call stores beginning Saturday, January 31,” the company stated. “Additionally, saksoff5th.com, which operates as a separate legal entity from Saks Global, will begin winding down its operations with an online closing sale starting Friday, January 30.”
Saks’ parent company, Saks Global Enterprises, filed for Chapter 11 bankruptcy protection in mid-January in the U.S. Bankruptcy Court for the Southern District of Texas after failing to make a $100 million interest payment in December, contributing to its growing debt obligations.
In the wake of the filing, Saks Global secured a financing commitment of approximately $1.75 billion, backed by senior secured bondholders and asset-based lenders, to support its operations during the restructuring process.
MIDDLE-INCOME AMERICANS STRUGGLING TO KEEP UP AS LIVING COSTS WEIGH ON PAYCHECKS, SURVEY SAYS
A Saks OFF 5TH location in West Palm Beach, Fla. (Jeff Greenberg/Education Images/Universal Images Group via Getty Images / Getty Images)
The bankruptcy filing follows closely on the heels of a significant acquisition. About a year ago, Canada-based conglomerate Hudson’s Bay Co., which had owned Saks since 2013, completed its approximately $2.7 billion acquisition of Neiman Marcus Group in December 2024. This move was aimed at building a more extensive luxury retail platform under the newly formed Saks Global Enterprises brand.
Saks Fifth Avenue’s parent company gained ownership of Neiman Marcus and Bergdorf Goodman, subsequently spinning off its U.S. luxury assets.
A display inside the Saks OFF 5TH store in West Palm Beach, Fla. (Jeff Greenberg/Education Images/Universal Images Group via Getty Images / Getty Images)
CLICK HERE TO READ MORE ON FOX BUSINESS
However, to fund this acquisition, Saks took on approximately $2.2 billion in debt.
FOX Business’ Daniella Genovese, Ashley Carnahan, and Reuters contributed to this report.
FOX Business’ Lauren Simonetti joins ‘Mornings with Maria’ to report on how artificial intelligence is transforming the retail shopping experience.
Saks Global has announced significant changes, revealing that most Saks OFF 5TH locations across the United States will be closing shortly after a bankruptcy filing. This decision marks a pivotal shift in the luxury retail landscape.
The luxury retailer disclosed that 23 Saks OFF 5TH stores will shut down on Monday, February 2. Additionally, another 34 locations will initiate closing sales starting this weekend. Only 12 stores will remain operational, located in New York, Florida, New Jersey, Georgia, California, and Texas.
“As we advance on Saks Global’s transformation, we are taking decisive steps to realign our business to better serve our luxury customers and drive full-price selling across our core luxury businesses,” stated Geoffroy van Raemdonck, CEO of Saks Global, in a statement released on Thursday. “With these actions, we will be well positioned to seize the greatest opportunities for long-term growth and value creation.”
The remaining Saks OFF 5TH stores are expected to primarily function as a selling channel for leftover inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.
SAKS GLOBAL FILES FOR BANKRUPTCY AFTER $2.7 BILLION NIEMAN MARCUS ACQUISITION DEAL
People walk with their purchases in front of the Saks OFF 5TH store at the Woodbury Common Premium Outlets Mall in October 2017 in Central Valley, N.Y. (Gary Hershorn/Getty Images / Getty Images)
“Subject to certain approvals in the chapter 11 process, the Company will commence closing sales at certain Saks OFF 5TH stores and all remaining [Nieman Marcus] Last Call stores beginning Saturday, January 31,” the company stated. “Additionally, saksoff5th.com, which operates as a separate legal entity from Saks Global, will begin winding down its operations with an online closing sale starting Friday, January 30.”
Saks’ parent company, Saks Global Enterprises, filed for Chapter 11 bankruptcy protection in mid-January in the U.S. Bankruptcy Court for the Southern District of Texas after failing to make a $100 million interest payment in December, contributing to its growing debt obligations.
In the wake of the filing, Saks Global secured a financing commitment of approximately $1.75 billion, backed by senior secured bondholders and asset-based lenders, to support its operations during the restructuring process.
MIDDLE-INCOME AMERICANS STRUGGLING TO KEEP UP AS LIVING COSTS WEIGH ON PAYCHECKS, SURVEY SAYS
A Saks OFF 5TH location in West Palm Beach, Fla. (Jeff Greenberg/Education Images/Universal Images Group via Getty Images / Getty Images)
The bankruptcy filing follows closely on the heels of a significant acquisition. About a year ago, Canada-based conglomerate Hudson’s Bay Co., which had owned Saks since 2013, completed its approximately $2.7 billion acquisition of Neiman Marcus Group in December 2024. This move was aimed at building a more extensive luxury retail platform under the newly formed Saks Global Enterprises brand.
Saks Fifth Avenue’s parent company gained ownership of Neiman Marcus and Bergdorf Goodman, subsequently spinning off its U.S. luxury assets.
A display inside the Saks OFF 5TH store in West Palm Beach, Fla. (Jeff Greenberg/Education Images/Universal Images Group via Getty Images / Getty Images)
CLICK HERE TO READ MORE ON FOX BUSINESS
However, to fund this acquisition, Saks took on approximately $2.2 billion in debt.
FOX Business’ Daniella Genovese, Ashley Carnahan, and Reuters contributed to this report.
