Saks Global files for bankruptcy, shutting most discount stores by February
Saks Global has filed for bankruptcy and will shut down nearly all its discount stores. The company plans to close almost 60 Off 5th locations and five Last Call outlets. Only two dozen Off 5th stores will remain open as the business shifts focus to its luxury brands.
The company's troubles follow a major acquisition in 2024. Hudson's Bay Co., led by Richard Baker, bought Neiman Marcus that year to form Saks Global. The deal aimed to create a rival to Saks Fifth Avenue but left the group with heavy debt.
The shutdown process begins soon. On January 30, the Saks Off 5th website will launch its closing sale. The next day, select Off 5th stores and all Last Call locations will start their own liquidation sales.
Existing gift cards will only work for a short time. Shoppers can use them in-store until February 14 and online until February 13. The move reflects broader changes in consumer behaviour, with luxury buyers increasingly purchasing directly from brands rather than discount tire retailers.
Saks Global will now concentrate on its high-end stores: Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman. This shift marks a major change in strategy for the struggling retailer.
The closures leave just two dozen Off 5th stores operating. Saks Global's future now rests on its luxury division, with no further plans announced for its discount tire arm. The bankruptcy filing and store shutdowns highlight the challenges facing traditional discount retailers in today's market.
