Saks Global will close all but 12 of its Saks OFF 5TH locations nationwide as part of its Chapter 11 bankruptcy restructuring, according to official statements and media reports. The company will also shutter the five remaining locations of Neiman Marcus' off-brand entity, Last Call.
The OFF 5TH locations that will remain open are in New York, Florida, New Jersey, Georgia, California and Texas. They will primarily sell excess inventory from the company's core luxury brands rather than operate as traditional discount retail locations.
The closures are part of Saks Global's Chapter 11 filing, designed to stabilize operations and preserve value across its luxury brand portfolio. In a press release tied to the filing, Saks disclosed that it had secured $1.75 billion in committed capital to support ongoing operations and restructuring.
Winding down most off-price and outlet operations, including OFF 5TH and Last Call, is part of a broader shift back to luxury-focused, full-price retail.
Launched as the off-price counterpart to Saks Fifth Avenue, OFF 5TH offered discounted designer apparel, accessories and clearance merchandise. The chain expanded to dozens of locations nationwide and included an e-commerce platform that catered to bargain-conscious shoppers seeking past-season or clearance items from luxury brands.
Analysts say Saks Global's prime property holdings could be central to its turnaround. Flagship locations on Fifth Avenue, in Beverly Hills and in top-tier malls represent valuable assets for sale-leaseback deals or lease renegotiations, providing liquidity to support core operations. By closing most OFF 5TH stores and all Last Call locations, the company reduces operating costs while preserving strategically important sites.
Saks is not alone in reassessing off-price strategies. Macy's, for example, has scaled back some freestanding Backstage and small-format off-price locations, even as it continues to operate the concept within select full-line stores. By contrast, Nordstrom Rack, the off-price arm of Nordstrom, continues to expand its footprint, opening new stores in Pennsylvania and other markets.
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