New York
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The parent company of Saks Off 5th and Last Call will close most locations to focus on its luxury retail stores after filing for bankruptcy this month.
Saks Global announced on Thursday that it will shutter almost 60 of its Off 5th locations and five Last Call storefronts. One dozen Off 5th locations will remain open, according to the company’s press release.
By shutting down the discount stores, Saks Global’s attention has shifted to its luxury offerings at Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman. It’s a major shift for the company, which floundered under a heavy debt load following its purchase of rival Neiman Marcus in 2024. However, even before the purchase, the company was already in a precarious financial situation.
In a statement on Thursday, Saks Global said the remaining Off 5th stores “will remain open to serve primarily as a selling channel for residual inventory from Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.”
“As such, Saks Global will move away from purchasing merchandise directly for Saks Off 5th,” the company added.
Shoppers have grown skeptical of luxury shopping and buying those goods direct from the brands. Meanwhile, the remaining luxury consumers are increasingly buying from the brands themselves, cutting out middlemen like department stores. This trend exacerbated the strain on Saks Global and its massive debt load.
The company said closing sales will commence January 31 for select Off 5th stores and all Last Call locations. The Saks Off 5th website will begin its closing sale on January 30.
Existing gift cards will only be accepted through Saturday, February 14, in store and Friday, February 13, online, according to Saks Global’s website.
