Saks Global announced the majority of its Saks OFF 5TH locations across the United States will now be closing, just weeks after a bankruptcy filing.
The luxury retailer said 23 of its Saks OFF 5TH stores will cease operations on Monday, Feb. 2, while another 34 will hold closing sales starting this weekend. Only 12 locations across New York, Florida, New Jersey, Georgia, California and Texas will remain open.
“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,” Geoffroy van Raemdonck, CEO of Saks Global, said in a statement Thursday. “With these actions, we will be well positioned to seize the greatest opportunities for long-term growth and value creation.”
The company said the remaining Saks OFF 5TH stores will “serve primarily as a selling channel for residual inventory from Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.”
SAKS GLOBAL FILES FOR BANKRUPTCY AFTER $2.7 BILLION NIEMAN MARCUS ACQUISITION DEAL
“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,” it also said. “In addition, saksoff5th.com, which is a separate legal entity from Saks Global, has determined that it will commence a wind-down of its operations, with an online closing sale beginning 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 missing a $100 million interest payment in December, adding to mounting debt obligations.
Following the filing, Saks Global announced it secured a financing commitment of approximately $1.75 billion, backed by senior secured bondholders and asset-based lenders, to support operations during the restructuring.
MIDDLE-INCOME AMERICANS STRUGGLING TO KEEP UP AS LIVING COSTS WEIGH ON PAYCHECKS, SURVEY SAYS
The bankruptcy filing comes about a year after Canada-based conglomerate Hudson’s Bay Co., which had owned Saks since 2013, completed its roughly $2.7 billion acquisition of Neiman Marcus Group in December 2024 to build out a larger 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 and spun off its U.S. luxury assets.
However, in order to fund the acquisition, Saks took on about $2.2 billion of debt.
FOX Business’ Daniella Genovese, Ashley Carnahan and Reuters contributed to this report.
Read the full article here
