Luxury retailer Saks Global, the parent company of Saks Fifth Avenue and Neiman Marcus, has announced an extensive plan to close nearly all Saks OFF 5TH locations as part of a Chapter 11 bankruptcy reorganization aimed at addressing significant debts. This decision significantly impacts the retail landscape, especially in California, where several popular discount department store locations are slated for closure.
Chapter 11 Bankruptcy and Store Closures
The sweeping closures stem from Saks Global's ongoing financial challenges, intensified by rising competition within the luxury retail sector and the debts incurred from purchases, notably the acquisition of Neiman Marcus over a year ago. Since filing for Chapter 11 reorganization on January 14, the company has been reevaluating its business model and focusing on profitability.
With 70 Saks OFF 5TH locations currently in operation, Saks Global plans to shutter 58 locations, retaining only 12 as it refocuses on its core luxury retail business. These remaining outlets will primarily serve as channels for excess inventory from Saks Fifth Avenue and other brands in its portfolio, including Neiman Marcus and Bergdorf Goodman.
Impact on California Locations
Several Saks OFF 5TH stores across California are facing imminent closure. Here are the locations affected:
Closing Locations
- Palm Desert
- Costa Mesa
- Beverly Connect in Los Angeles
- Woodland Hills
- Livermore
- Cabazon
In addition to these, several Saks OFF 5TH locations have already been shut down in the state, including:
- Petaluma
- San Diego
- Camarillo
- Ontario
- Milpitas
Currently, the only Saks OFF 5TH store remaining in California is at The Outlets at Orange.
Neiman Marcus Last Call Stores
Neiman Marcus has also announced closing sales for its Last Call retail outlets in California, which include:
- Desert Hills Premium Outlets in Cabazon
- The Outlets at Orange in Orange
Furthermore, Saks Fifth Avenue will close eight of its flagship stores across the United States, including the Neiman Marcus outlet in Boston. The following Saks Fifth Avenue locations have been designated for closure:
- The Summit in Birmingham, Alabama
- Polaris Fashion Place in Columbus, Ohio
- American Dream in East Rutherford, New Jersey
- Shops at Canal Place in New Orleans, Louisiana
- Bala Plaza in Philadelphia, Pennsylvania
- Biltmore Fashion Park in Phoenix, Arizona
- Stony Point Fashion Park in Richmond, Virginia
- Utica Square in Tulsa, Oklahoma
All Saks Fifth Avenue stores set for closure will remain open until the end of April 2026.
A Shift Towards Sustainable Luxury
Geoffroy van Raemdonck, CEO of Saks Global, emphasized the need for transformation within the company to better cater to luxury consumers. In a statement, he remarked, “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.”
In addition to the store closures, the company will also be phasing out 14 standalone Fifth Avenue Club personal styling suites, retaining only three. Moreover, it will close its home site, Horchow.com, redirecting customers to NeimanMarcus.com for home category items starting from February 19.
Looking Ahead
As Saks Global embarks on this major restructuring, the future of retail, particularly within the luxury segment, is under scrutiny. The closures and shifting focus raise questions about consumer behavior and the evolving landscape of luxury retail in a competitive market.
For a complete list of the Saks OFF 5TH and Last Call locations set to close, you can access the full document here.
The situation reflects not only challenges specific to Saks Global but also the larger narratives of change within the retail industry, where brands must adapt to an ever-evolving consumer market.
