Imagine outlet malls waking up to aisles of bright clearance signs and suddenly quiet fitting rooms. That’s the scene unfolding at Saks Global’s off-price operations this week as the company moves to shutter the bulk of its discount footprint and wind down online operations.
What happened
Saks Global announced it will close about 57 Saks OFF 5TH stores and all five Last Call locations as part of its Chapter 11 restructuring. Only 12 OFF 5TH brick-and-mortar outlets will remain open, many concentrated in New York, Florida, New Jersey, Georgia, California and Texas. The web arm for Saksoff5th.com — a separately held e-commerce entity — is also being wound down, with online closing sales beginning at the end of January and in early February.Timing is rolling: roughly 34 stores began closing sales around Jan. 31 while another 23 locations staged closing events on Feb. 2, according to company schedules. Gift cards will still be accepted for a short window — in stores through Feb. 14 and online through Feb. 13 — so shoppers with credit in their wallets have a limited runway.
Geoffroy van Raemdonck, Saks Global’s CEO, framed the move as a strategic retrenchment toward full-price luxury: remaining OFF 5TH doors will serve mainly as channels to sell residual inventory from Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, and Saks Global said it will stop buying merchandise directly for OFF 5TH.
Why the cuts matter
The downsizing is both financial triage and a sign of broader change in high-end retail. Saks Global filed for Chapter 11 on Jan. 14 after taking on massive debt tied to its December 2024 purchase of Neiman Marcus. The company has been carrying more than $2.5 billion in debt — figures reported around $2.7 billion in some coverage — and told the court it needs to simplify operations and shore up liquidity.A short-term lifeline is in play: the company is accessing the initial $500 million tranche of a $1.75 billion committed facility to help stabilize inventory flows and payments to brand partners. But shutting off-price channels is also a reaction to longer-term pressures: department stores and outlet formats have been squeezed by digital commerce, brands pushing direct-to-consumer sales, shifting tastes among younger shoppers and a softening of some overseas demand, notably from China.
For vendors and store employees the impact is immediate and uncertain. Saks Global did not disclose how many jobs will be affected, and reports have noted unpaid vendor bills that helped push the retailer into this restructuring.
The practical details shoppers and landlords will notice
- Select OFF 5TH stores will run clearance and closing sales starting Jan. 31 and Feb. 2, depending on location.
- Saksoff5th.com will wind down and host an online closing sale; certain gift-card deadlines apply in-store and online in mid-February.
- Some outlet spaces freed by the closures could be scooped up by competing off-price chains such as Nordstrom Rack or T.J. Maxx, which often expand when competitors retreat.
Industry watchers also caution that these cuts may not end with Off 5th and Last Call: the company has signaled the broader portfolio is under review, and additional store-level or operational changes at Saks Fifth Avenue or Neiman Marcus remain possible as the bankruptcy process unfolds.
This is an early, fast-moving chapter in what will be a complex restructuring. For shoppers it means bargain hunts in the short term; for landlords, vendors and employees it brings a scramble to rework leases, recover payments and find new opportunities. For Saks Global, the move narrows focus back onto flagship luxury selling and a bet that concentrating on full-price, full-service retail will better position the business for longer-term viability.
(Reporting synthesized from company statements and coverage by multiple outlets.)