Saks OFF 5TH to Close Most Stores as Parent Company Refocuses on Luxury Market

Saks Global stated that a limited number of Saks OFF 5TH stores will remain open but will function primarily as clearance channels for excess inventory from its full-price luxury retailers, rather than as standalone off-price merchants.

Rudy Blalock

Published: 1/29/2026, 11:42:22 PM EST

Saks OFF 5TH to Close Most Stores as Parent Company Refocuses on Luxury Market — An exterior view of the Saks OFF 5TH celebration for the opening of the 57th Street location featuring the first-ever Gilt in-store shop in New York City on March 2, 2016. (Cindy Ord/Getty Images for Gilt Groupe)

Saks Global said Thursday it is shuttering the vast majority of its discount retail locations as part of a broader restructuring following its January bankruptcy filing.

The company will close most Saks OFF 5TH stores and all remaining Last Call locations beginning Saturday, while simultaneously winding down its online off-price operation, according to a press release.

The strategic pivot represents a major shift in direction for the world's largest multi-brand luxury retailer, which operates iconic names including Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.

"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," said Geoffroy van Raemdonck, who took over as chief executive in mid-January. "With these actions, we will be well positioned to seize the greatest opportunities for long-term growth and value creation."

The store closures represent the second major operational restructuring announced since Saks Global entered Chapter 11 bankruptcy protection on Jan. 14. At that time, the company secured approximately $1.75 billion in financing—including $1.5 billion from senior secured bondholders and $240 million from asset-based lenders—to stabilize operations during the bankruptcy process.

The company indicated it will stop purchasing inventory directly for the Saks OFF 5TH brand going forward.

The online Saks OFF 5TH operation, which operates as a separate legal entity, will launch a closing sale beginning Friday. A complete list of physical store locations slated for closure has been posted on the company's website, along with details regarding customer program changes.

Van Raemdonck, who previously led Neiman Marcus Group before its acquisition by Saks Global in 2024, has been restructuring the company's leadership since his appointment. The executive brought on industry veterans Darcy Penick as president and chief commercial officer, and Lana Todorovich as chief of global brand partnerships.

The bankruptcy filing marked the first major crisis for Saks Global since Richard Baker's 2013 acquisition of the retail portfolio. Baker, who served as executive chairman and CEO, stepped down from his position effective Jan. 13.

"We sincerely thank our Saks OFF 5TH and Last Call colleagues for the important role they have played in serving our loyal customers," van Raemdonck said in a statement.

The company emphasized that its three marquee full-price retail brands—Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman—remain fully operational across their combined 70 luxury locations and five e-commerce platforms.

Saks Global said these core properties represent nearly 13 million square feet of premium real estate across major American luxury markets.