Saks Off 5th is getting deep-sixed.
The discount chain is closing 57 stores — the vast majority of its locations — in the coming weeks as part of Saks Global’s recent bankruptcy filing, the company said on Thursday.
Liquidation sales at 34 Saks Off 5th stores will begin Saturday. Another 23 stores are slated to close Feb. 2, said Saks Global, which owns the chain along with Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.
Saks Global is also closing the remaining five Last Call stores, Neiman Marcus’ discount chain in Florida, California and Texas.
Just a dozen Saks Off 5th stores will remain open, including the Garden City, NY, and Woodbury Common Premium Outlets in Central Valley, NY. The Boca Raton and West Palm Beach stores in Florida were also spared.
The remaining stores will primarily serve as a selling channel for residual inventory from Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, Saks Global said. It will move away from purchasing merchandise directly for Saks Off 5th, the company added.
The Saks Off 5th closures are the first to be announced by the bankrupt luxury retailer, though industry experts expect more stores to shutter as Saks Global looks to shed its least profitable locations.
“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,” Saks Global CEO Geoffroy van Raemdonck said in a statement.
“With these actions, we will be well positioned to seize the greatest opportunities for long-term growth and value creation.”
