Saks Global Enterprises LLC (Saks Global) announced strategic actions to wind down the majority of its off-price operations, sharpening its focus on luxury retail and full-price selling across its iconic portfolio. 

These actions are part of the company’s ongoing evaluation of its operational footprint to ensure it remains well-positioned to invest in areas that present the greatest opportunities for sustainable, profitable growth for its luxury retail brands and partners.

Geoffroy van Raemdonck, Chief Executive Officer of Saks Global, said,

“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. With these actions, we will be well positioned to seize the greatest opportunities for long-term growth and value creation. We sincerely thank our Saks OFF 5TH and Last Call colleagues for the important role they have played in serving our loyal customers.”

Following a thorough review of its off-price business, Saks Global decided to close the majority of its Saks OFF 5TH retail locations and the remaining Last Call stores. 

Subject to certain approvals in the Chapter 11 process, the company will commence closing sales at certain Saks OFF 5TH stores and all remaining Last Call stores beginning Saturday, January 31.

Select Saks OFF 5TH stores will remain open to serve primarily as a selling channel for residual inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman. As such, Saks Global will move away from purchasing merchandise directly for Saks OFF 5TH.

Additionally, saksoff5th.com, which is a separate legal entity from Saks Global, will commence a wind-down of its operations, with an online closing sale beginning Friday, January 30. 

During the closing sales, the Saks OFF 5TH ecommerce and brick-and-mortar businesses maintain the flexibility to pivot to alternative transactions, should any emerge.

Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman stores and ecommerce experiences are open and serving customers as usual.

Saks Global continues to access the initial tranche of $500 million of $1.75 billion in committed capital to support operations and transformation initiatives across its portfolio, including facilitating go-forward payments to brand partners and accelerating inventory flow across its full-price retail brands.

Photo: Shutterstock/ Ronnie Chua