New York, NY, January 31, 2026
Saks Global, the parent company of Saks Fifth Avenue and Neiman Marcus, will close a significant number of its Saks Off 5th outlets and all Last Call stores as part of a Chapter 11 bankruptcy restructuring plan. This move, aimed at streamlining operations and focusing on luxury retail, could have widespread implications for employees and loyal customers. Liquidation sales will start soon, promising discounts up to 85%. The closures reflect a strategic shift as the company seeks to navigate financial challenges while maintaining its core luxury offerings.
Saks Global Announces Store Closures Amid Bankruptcy Restructuring
Saks Off 5th and Last Call Stores to Shut Down as Company Navigates Financial Challenges
New York, NY – Saks Global, the parent company of Saks Fifth Avenue and Neiman Marcus, is taking decisive action by closing most of its Saks Off 5th outlets and all Last Call stores as part of its Chapter 11 bankruptcy reorganization. This strategic move aims to streamline operations, allowing the company to refocus on its core luxury retail businesses, a sector often regarded as resilient amidst economic fluctuations.
This development has wide-ranging implications not only for the company but also for its loyal customer base and employees. As San Diego entrepreneurs and local businesses demonstrate their ability to adapt and thrive, this situation serves as a reminder of the importance of agility and innovation in today’s economic landscape. The resilience seen among small businesses in San Diego, often bolstered by reduced regulation and a supportive community environment, could offer valuable lessons for larger corporations facing challenges.
Store Closures Overview
Saks Global’s announcement confirms significant cutbacks in its retail footprint:
- Saks Off 5th: Of the 70 existing locations, 57 will close, leaving just 12 operational stores that will primarily focus on selling residual inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.
- Last Call: All five Last Call stores will close permanently.
Changes to Online Operations
The company has also decided to wind down Saksoff5th.com, halting merchandise purchases directly for Saks Off 5th. Liquidation sales are set to begin at select locations and online, promising discounts that could reach up to 85% off retail prices. Such sales can attract bargain hunters and loyal customers looking to take advantage of significant markdowns during this challenging transition.
Financial Restructuring Details
Saks Global filed for Chapter 11 bankruptcy on January 14, 2026, primarily driven by the substantial debt stemming from its acquisition of Neiman Marcus. To facilitate its turnaround, the company has secured $500 million as part of a larger $1.75 billion financing deal. This funding is intended to pay off suppliers and stabilize operations while maintaining the core luxury brand offerings.
Impact on Employees and Customers
The impending closures will inevitably impact employees at the affected locations. While specific details regarding layoffs or potential transfers have not yet been shared, it is crucial for affected staff to engage with management or HR for clarity. Customers are likewise encouraged to reach out to individual stores for updated information on returns, exchanges, and gift card usage, as policies may shift during the liquidation process.
Strategic Shift for Saks Global
The decision to close these stores clearly marks a strategic pivot for Saks Global, focusing its efforts on luxury brands amidst ongoing financial hurdles. By concentrating on full-line stores such as Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, the company hopes to navigate its challenges while continuing to support its brand equity and customer loyalty.
Conclusion
This significant restructuring at Saks Global not only highlights the challenges facing large retailers but also underscores the adaptability of businesses within the broader economic climate. As rising local entrepreneurs in San Diego and throughout California continue to showcase innovative ways to grow, it’s vital for community members and consumers to support local businesses engaging in resilient practices. Staying involved with San Diego’s economic landscape can foster growth, encourage entrepreneurial spirit, and ultimately lead to a thriving local economy.
FAQ
What stores are closing?
Saks Global is closing 57 of its 70 Saks Off 5th locations and all five Last Call stores. The remaining 12 Saks Off 5th stores will operate primarily to sell residual inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.
When will the stores close?
The company has not specified exact closure dates for each store. Customers are advised to check with individual locations for specific details.
What is happening to the online store?
Saksoff5th.com will wind down its operations, ceasing to purchase merchandise directly for Saks Off 5th. Liquidation sales are set to begin at selected locations and online, with discounts reportedly up to 85%.
How will this affect employees?
Employees at the closing locations will be affected. Specific details regarding layoffs or transfers have not been provided. Employees are encouraged to contact their managers or human resources for more information.
What should customers do with gift cards?
Customers are advised to check with individual stores for specific details regarding gift card usage, as policies may change during the liquidation process.
Key Features
| Feature | Details |
|---|---|
| Store Closures | 57 Saks Off 5th locations and all five Last Call stores will close; 12 Saks Off 5th stores remain operational. |
| Online Operations | Saksoff5th.com will wind down, ceasing to purchase merchandise directly for Saks Off 5th; liquidation sales begin with discounts up to 85%. |
| Financial Restructuring | Saks Global filed for Chapter 11 bankruptcy on January 14, 2026; secured $500 million of a $1.75 billion financing deal to pay off suppliers and stabilize operations. |
| Impact on Employees and Customers | Employees at closing locations will be affected; customers advised to check with individual stores for details regarding returns, exchanges, and gift card usage. |
| Background | Saks Global’s decision reflects a strategic shift to focus on luxury brands amid financial challenges; full-line stores continue to operate during bankruptcy proceedings. |
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