Most Saks OFF 5TH stores to close amid bankruptcy: Here’s where

NEW YORK - Saks Global Enterprises announced actions to close the majority of its Saks OFF 5th locations and remaining Last Call stores across the United States.

The luxury retail brand said the decision was part of the company’s ongoing evaluation of its operational footprint. Saks said it would instead sharpen its focus on luxury retail and full-price selling. 

Most Saks OFF 5th locations to close

Big picture view:

The company said 23 of its Saks OFF 5TH stores will cease operations on Monday, Feb. 2, while another 34 held closing sales over the weekend. Only 12 locations in New York, Florida, New Jersey, Georgia, California and Texas will remain open. 

See the full list of the stores that will close and remain open here.

According to the company, 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.

What they're saying:

"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," Geoffroy van Raemdonck, the chief executive officer of Saks Global, said in a statement. "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."

Saks' parent company files for bankruptcy

The backstory:

This news comes just weeks after Saks’ parent company filed for Chapter 11 bankruptcy protection in mid-January in the U.S. Bankruptcy Court for the Southern District of Texas after missing a $100 million interest payment in December.

Following the filing, Saks Global announced it secured a financing commitment of approximately $1.75 billion, backed by senior secured bondholders and asset-based lenders, to support operations during the restructuring. 

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Saks Fifth Avenue's parent company gained ownership of Neiman Marcus and Bergdorf Goodman and spun off its U.S. luxury assets. However, in order to fund the acquisition, Saks took on about $2.2 billion of debt.