Saks to shutter most Saks Off 5th stores as bankrupt retailer cuts costs

Saks Global, a bankrupt retailer, has announced plans to close most of its Sak Off 5th stores in an effort to reduce costs and focus on serving higher-income customers. The company revealed that it will be shutting down all but 12 of its 70 Saks Off 5th locations, with the remaining stores primarily selling residual inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.

This decision comes after Saks Global filed for Chapter 11 protection earlier this month. CEO Geoffroy van Raemdonck stated, “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.”

Going-out-of-business sales will commence at certain Saks Off 5th locations and all Last Call stores starting this Saturday, pending bankruptcy approval. Online discounts of up to 85% off on merchandise have already been rolled out on Saksoff5th.com. In addition, Saks will be winding down Saksoff5th.com as a separate legal entity and will no longer directly purchase merchandise for Saks Off 5th.

The company also announced the closure of the remaining five Last Call stores, which are outlet locations that provide discounts for Neiman Marcus. Saks, founded in 1924, has faced challenges in recent years, particularly after acquiring rival luxury retailer Neiman Marcus in 2024 for $2.65 billion. Like many other brick-and-mortar retailers, Saks has struggled to compete in the e-commerce landscape.

In 2025, over 8,100 stores closed across the U.S., marking a 12% increase from the previous year, according to retail industry analytics firm Coresight Research. Saks Global’s decision to streamline its operations and focus on luxury retail reflects a broader trend in the retail industry towards adapting to changing consumer preferences and technological advancements.

As Saks Global navigates its restructuring efforts, it remains to be seen how the company will evolve to meet the demands of the modern retail landscape. The closure of Sak Off 5th stores signifies a strategic shift towards a more exclusive and upscale retail experience for Saks’ discerning clientele.