In a significant restructuring move, Saks Global, the parent company of luxury retailers Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, has announced the closure of the majority of its off-price store locations. This decision impacts dozens of outlets across the United States, marking a pivotal moment for the retail conglomerate.
Extensive Store Closures Announced
Out of a total of 74 Saks Off 5th and Neiman Marcus Last Call stores nationwide, only 12 will remain operational. These surviving locations are set to serve a specific purpose: they will primarily sell residual inventory from the company's luxury brands rather than offering new merchandise. This strategic shift indicates a move away from the off-price retail model that these stores previously represented.
Closing Sales and Customer Promotions
Saks Off 5th has officially announced the commencement of closing sales at select stores. In a statement regarding the closures, the company revealed that these promotional events are expected to last for several weeks. "We encourage you to shop for your favorite brands while merchandise selection is best," the company wrote, urging customers to take advantage of the final sales opportunities.
Bankruptcy Filing Triggers Restructuring
The mass closures come in the wake of Saks Global filing for Chapter 11 bankruptcy protection. This financial move was triggered, in part, by a missed $100 million interest payment related to the company's 2024 acquisition of Neiman Marcus. The bankruptcy filing has necessitated a comprehensive review and restructuring of the company's operations.
Continuity for Core Luxury Brands
Despite the widespread closures of off-price stores, Saks Global has confirmed that its core luxury brands will continue to operate as normal. This includes:
- Saks Fifth Avenue stores and their online site
- Neiman Marcus stores and their online platform
- Bergdorf Goodman stores and their respective digital presence
However, SaksOff5th.com, the online counterpart to the off-price stores, will begin winding down its operations as part of the broader restructuring plan.
The closures represent a strategic retrenchment for Saks Global, focusing resources on its flagship luxury offerings while scaling back its off-price retail footprint in response to financial pressures and market conditions.
