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Global Scissors announced that the majority of its Saks OFF 5TH locations across the United States will now close their doors, just weeks after filing for bankruptcy.
The luxury retailer said 23 of its Saks OFF 5TH stores will cease operations on Monday, February 2, while 34 others will remain in operation. closing of sales starting this weekend. Only 12 locations in New York, Florida, New Jersey, Georgia, California and Texas will remain open.
“As we progress the transformation of Saks Global, we are taking decisive steps to realign our businesses to better serve our luxury customers and drive premium selling in our core luxury businesses,” Geoffroy van Raemdonck, CEO of Saks Global, said in a statement THURSDAY. “Through these actions, we will be well positioned to capture the greatest opportunities for growth and long-term value creation.”
The company said the remaining Saks OFF 5TH stores “will primarily serve as a sales channel for residual inventory from Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.”
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People walk with their purchases past the Saks OFF 5TH store at Woodbury Common Premium Outlets in October 2017 in Central Valley, New York (Gary Hershorn/Getty Images/Getty Images)
“Subject to certain approvals through the Chapter 11 process, the Company will begin closing sales at certain Saks OFF 5TH stores and all remaining stores. [Nieman Marcus] “Last Call stores will open on Saturday January 31,” he also indicated. “Additionally, saksoff5th.com, which is a separate legal entity from Saks Global, has determined that it will begin winding down its operations, with an online closing sale beginning on Friday, January 30.”
Saks’ parent company, Saks Global Enterprises, filed for Chapter 11 bankruptcy protection in mid-January in the U.S. Bankruptcy Court for the Southern District of Texas after missing a $100 million interest payment in December, adding to mounting debts.
Following the filing, Saks Global announced that it had secured a financing commitment of approximately $1.75 billion, supported by senior secured bondholders and asset-based lenders, to support operations during the restructuring.
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A Saks OFF 5TH location in West Palm Beach, Florida. (Jeff Greenberg/Education Images/Universal Images Group via Getty Images/Getty Images)
The bankruptcy filing comes about a year after Canadian conglomerate Hudson’s Bay Co., which has owned Saks since 2013, completed its roughly $2.7 billion acquisition of Neiman Marcus Group in December 2024 to build a larger luxury retail platform under the new Saks Global Enterprises brand.
The parent company of Saks Fifth Avenue became the owner of Neiman Marcus and Bergdorf Goodman and spun off its U.S. luxury assets.
A display window inside the Saks OFF 5TH store in West Palm Beach, Florida. (Jeff Greenberg/Education Images/Universal Images Group via Getty Images/Getty Images)
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However, in order to finance the acquisition, Saks took on approximately $2.2 billion in debt.
FOX Business’ Daniella Genovese, Ashley Carnahan and Reuters contributed to this report.
