The shakeout in luxury retail that has claimed the parent company of Saks 5th Avenue, Bergdorf Goodman and Neiman Marcus is about to hit shoppers.
Saks Global announced Thursday that it will close all but 12 of its Saks OFF 5TH locations nationwide as part of its bankruptcy restructuring. The company will also shutter the five remaining locations of Neiman Marcus' off-brand entity, Last Call.
A total of 57 Saks OFF 5TH locations will be closed in the coming weeks, the company told NBC News. A separate entity that controls the website Saksoff5th.com will also wind down its operations, Saks Global said.
The company would not say how many jobs store closures across the two brands will affect.
Saks Global entered into Chapter 11 bankruptcy proceedings Jan. 14, which allows it to negotiate with creditors and restructure its operations, rather than liquidate.
After it bought rival Neiman Marcus in 2024, Saks Global has buckled under the weight of more than $2.5 billion of debt it acquired as part of the deal.
The company's challenge was compounded by the broader shift away from department stores and malls that began a decade ago, when online commerce began to displace brick-and-mortar shopping.
More recently, a brief post-pandemic boost in luxury retail ended in 2023, when a drop in demand among Chinese consumers collided with younger shoppers' changing priorities.
According to Saks Global, the decision to scale back most of its off-price operations will permit it to focus on luxury brands in full-price, retail settings.
Twenty-three OFF 5TH stores will close their doors Monday, while the remaining 34 locations will hold closing sales beginning Saturday and will be shut in the coming weeks.
The 12 locations that will remain open are in New York, Florida, New Jersey, Georgia, California and Texas.
