Saks Global is closing 57 of its Saks OFF 5TH discount stores nationwide, leaving just 12 locations open as the luxury retailer shifts focus to full-price sales.
The mass closures come weeks after parent company Saks Global filed for Chapter 11 bankruptcy protection, signaling major changes for the off-price retail chain.
Twenty-three stores shut their doors on Monday, while 34 others held final clearance sales over the weekend. The remaining dozen locations span six states: 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,” CEO Geoffroy van Raemdonck said in a statement. “With these actions, we will be well positioned to seize the greatest opportunities for long-term growth and value creation.”
The surviving OFF 5TH stores will primarily sell leftover inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman. The company will stop purchasing merchandise specifically for its discount division.
Van Raemdonck thanked employees affected by the closures.
“We sincerely thank our Saks OFF 5TH and Last Call colleagues for the important role they have played in serving our loyal customers.”
Saks Global filed for bankruptcy in mid-January after missing a $100 million interest payment in December. The company secured $1.75 billion in financing to continue operations during restructuring.
The retailer had taken on approximately $2.2 billion in debt to acquire Neiman Marcus and Bergdorf Goodman. That acquisition helped create the current Saks Global entity, but left it struggling with heavy debt payments.
The bankruptcy filing occurred in the U.S. Bankruptcy Court for the Southern District of Texas. Senior secured bondholders and asset-based lenders are backing the restructuring financing.
All remaining Last Call stores, another Saks discount brand, will also close permanently. The company hasn’t specified exact closure dates for those locations.
In North Texas, the Saks OFF 5th location at Grapevine Mills will remain open for business. The Grand Prairie and Dallas Park locations are slated to be shuttered, according to the list published by Saks Global.
