Saks Global, the parent company of the Saks Fifth Avenue department store chain, it is closing 62 of its 70 Saks Off 5th discount outlets as part of its bankruptcy protection restructuring.
The Wall Street Journal reports the stores targeted for closing will begin holding going-out-of-business sales on Saturday. The Saks Off 5th online business, which operates as a separate entity, is also being shut down and will begin liquidation sales today.
Both the brick-and-mortar and e-commerce elements of the Saks Off 5th business is projected to lose $139 million for the company’s latest fiscal year. The 12 remaining stores will be used to move unsold inventory from the company’s Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman brands – new inventory will no longer be acquired specifically for the Saks Off 5th locations that remain open.
Saks Global is also closing the five remaining Last Call stores that served as a discount venue for Neiman Marcus, which closed most of those outlets in 2020 during its bankruptcy filing.
“With these actions, we will be well-positioned to seize the greatest opportunities for long-term growth and value creation,” said Saks Global Chief Executive Geoffroy van Raemdonck.
Photo courtesy Saks Off 5th
