Saks Global Shutters Most Saks Off 5th Locations Amid Bankruptcy Restructuring

Saks Global, the parent company of Saks Fifth Avenue and Neiman Marcus, has announced the closure of 57 out of its 70 Saks Off 5th locations as part of its Chapter 11 bankruptcy restructuring. This decision follows a significant financial downturn, exacerbated by a $2.7 billion acquisition of Neiman Marcus in 2024, which left the company with over $2.5 billion in debt. The closures will commence with liquidation sales starting January 31, 2026, at 34 locations, while 23 additional stores will close on February 2, 2026. Only 12 Saks Off 5th stores will remain operational, primarily serving as outlets for residual inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.

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Saks Global filed for Chapter 11 bankruptcy protection on January 14, 2026, after missing a $100 million interest payment in December 2025. The company cited rising competition and a shift in consumer shopping habits towards e-commerce as contributing factors to its financial struggles. The bankruptcy filing allows Saks Global to negotiate with creditors and restructure its operations rather than liquidate entirely. The company has secured approximately $1.75 billion in financing to support its restructuring efforts.

Most Saks OFF 5TH locations nationwide to close amid bankruptcy proceedings

The decision to close most off-price locations reflects a strategic pivot towards focusing on luxury retail and full-price sales. CEO Geoffroy van Raemdonck emphasized the need to realign the business to better serve luxury customers and enhance profitability. The remaining Saks Off 5th stores will no longer purchase new merchandise but will instead sell leftover stock from the company's luxury brands. This shift aims to stabilize operations and position Saks Global for long-term growth.

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Critics have raised concerns about the potential loss of jobs resulting from the store closures, although specific figures have not been disclosed. Additionally, industry experts note that the closure of Saks Off 5th locations may indicate broader challenges facing traditional retail, particularly as consumer preferences continue to evolve towards direct brand purchases and online shopping.

Saks OFF 5th confirms almost all stores will close just weeks after bankruptcy filing

In a statement, Geoffroy van Raemdonck remarked, “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.” The company expressed gratitude towards its employees and customers, acknowledging their loyalty during this transition.

Saks Global to close 62 stores and exit majority of its off-price business amid bankruptcy

As Saks Global moves forward with its restructuring, the focus will remain on its core luxury brands. The company plans to continue operations at its full-price stores, including Saks Fifth Avenue and Neiman Marcus, while evaluating its overall operational footprint for potential further adjustments. The future of Saks Off 5th remains uncertain, with industry analysts speculating on the viability of the off-price retail segment within the company's portfolio.

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• “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

More than 60 Saks Off 5th stores are set to close after parent company files for bankruptcy - and liquidation sales begin

• “The company is incredibly grateful for the loyalty its Saks OFF 5TH and Last Call customers have shown over the years and appreciates being part of your shopping journey,” — Saks Global Statement

More than 60 Saks Off 5th stores are set to close after parent company files for bankruptcy - and liquidation sales begin

The restructuring of Saks Global marks a significant turning point in the luxury retail landscape, as the company seeks to navigate financial challenges while adapting to changing consumer behaviors.

A Major Luxury Retailer Is Shutting Down Most of Its Discount Stores Amid Bankruptcy