Saks Global Restructures Amid Bankruptcy: Major Store Closures Announced

Saks Global, the parent company of Saks Off 5th, Neiman Marcus, and Bergdorf Goodman, has announced significant store closures as part of its Chapter 11 bankruptcy restructuring. The company will close 57 of its Saks Off 5th locations and all five Last Call stores, leaving only 12 Saks Off 5th outlets operational. This decision follows a bankruptcy filing on January 14, 2026, amid a staggering $3.4 billion in debt, largely attributed to its 2024 acquisition of Neiman Marcus, which left the company struggling to manage its financial obligations.

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The closures are part of a strategic pivot to refocus on luxury retail, as Saks Global aims to enhance its offerings at Saks Fifth Avenue and other high-end brands. CEO Geoffroy van Raemdonck stated, “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.” The remaining Saks Off 5th locations will primarily serve as channels for selling residual inventory from the luxury brands.

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Liquidation sales for the affected Saks Off 5th stores will begin on January 31, 2026, with 34 locations starting sales that day and another 23 closing on February 2. The Last Call stores will also commence closing sales on January 31. The company has indicated that existing gift cards will be accepted until mid-February.

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Saks Global's restructuring plan includes a creditors committee formed by the U.S. Trustee’s Office, which comprises major stakeholders such as Amazon, Chanel, and LVMH. This committee will play a crucial role in guiding the bankruptcy proceedings. Saks has requested permission to make $337.4 million in payments to critical vendors, including $136 million owed to Chanel, to maintain inventory flow and customer loyalty.

Amazon, Chanel appointed to represent Saks' creditors in bankruptcyInside the High-Stakes Committee Steering Saks' BankruptcyAmazon, Chanel, Brookfield Join Saks Global Bankruptcy CommitteeBankrupt Saks To Close 62 Stores, Go All-In On Luxury Shoppers

Amazon has expressed concerns regarding Saks' bankruptcy financing plan, arguing that it could jeopardize its $475 million equity investment and diminish its position in the repayment hierarchy. The e-commerce giant has indicated that it may pursue further actions if its objections are not addressed. This tension highlights the complexities of the bankruptcy process, where various stakeholders have competing interests.

Inside the High-Stakes Committee Steering Saks' Bankruptcy

As Saks Global navigates its bankruptcy proceedings, the focus will remain on restructuring its operations to emerge as a more profitable entity. The company has secured approximately $1.75 billion in financing to support its operations during this transition. The future of Saks Global will depend on its ability to effectively manage its debt and restore its position in the luxury retail market.

Legendary retail giant launches closing down sales up to 81% as online store to be eliminated entirely

• “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

Bankrupt Saks To Close 62 Stores, Go All-In On Luxury Shoppers

• “Saks Global has long been a key strategic partner for the luxury sector and for the Ermenegildo Zegna Group’s three brands: Zegna, Tom Ford Fashion and Thom Browne,” — Ermenegildo Zegna Group

Amazon, Chanel, Brookfield Join Saks Global Bankruptcy Committee

While Saks Global has disclosed its debt levels and restructuring plans, specific details regarding the number of jobs affected by the store closures have not been provided. Additionally, the exact timeline for the complete liquidation of the Saks Off 5th website remains unclear, as it is set to wind down operations following the store closures.

Majority of Saks OFF 5TH stores to close amid bankruptcy