By Blessing Nweke
The shakeout in luxury retail that has already claimed the parent company of Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus is now set to hit shoppers directly.
Saks Global announced Thursday that it will close all but 12 of its Saks OFF 5TH locations nationwide as part of its ongoing Chapter 11 bankruptcy restructuring. The company will also shutter the remaining five stores of Neiman Marcus’ off-price chain, Last Call. In total, 57 Saks OFF 5TH stores will close in the coming weeks, Saks Global told NBC News.
In addition to the store closures, a separate entity that operates the Saksoff5th.com website will wind down its operations. The company declined to say how many jobs will be affected by the closures across both brands.
Saks Global entered Chapter 11 bankruptcy proceedings on Jan. 14, a move that allows it to negotiate with creditors and restructure its business rather than liquidate. The filing followed the company’s 2024 acquisition of rival Neiman Marcus, a deal that saddled Saks Global with more than $2.5 billion in debt.
The company’s financial strain has been intensified by long-running challenges facing department stores and malls, as online shopping continues to displace brick-and-mortar retail. A brief post-pandemic rebound in luxury spending faded in 2023, when weaker demand from Chinese consumers coincided with shifting priorities among younger shoppers.
Saks Global said scaling back its off-price business will allow it to refocus on luxury brands sold in full-price retail environments. Twenty-three OFF 5TH stores will close on Monday, while the remaining 34 locations will begin closing sales on Saturday before shutting their doors in the coming weeks.
The 12 Saks OFF 5TH stores that will remain open are located in New York, Florida, New Jersey, Georgia, California and Texas.
Original article
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