In reorganizing after filing for Chapter 11 bankruptcy protection, Saks Global Enterprises stated it intends to focus more sharply on luxury retail and full-price selling across the company’s store portfolio, and it will shut down most of its offprice operation.
The plan arises from an ongoing evaluation of Saks’ operational footprint to ensure it remains well positioned to invest in areas that present the greatest opportunities for sustainable, profitable growth, including for its luxury retail brands and partners, the company maintained.
As part of that effort, Saks conducted a review of its offprice business, which includes the Off 5th and Last Call banners. The company decided to close the majority of its Off 5th retail locations and the remaining Last Call stores. Subject to approvals in the Chapter 11 process, the company will begin closing sales at designated Off 5th stores and all remaining Last Call stores beginning Saturday, January 31.
According to Saks, all five Last Call stores, located in Florida, Texas and California, will close. The company will shutter 53 Off Fifth locations from California to New Hampshire, as well as its single store in Hawaii. A dozen Off Fifth stores will remain open, including locations in the New York City Metropolitan area, California, Texas, Georgia and, with half of the remaining outlets, Florida. The select Saks Off 5th stores that remain open will serve primarily as a selling channel for residual inventory from Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman. Saks will move away from purchasing merchandise directly for remaining Off 5th stores, the company stated.
Online, saksoff5th.com, which is a separate legal entity from Saks Global, has determined to wind down its operations. Saks noted an online closing sale has begun.
“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,” said Geoffroy van Raemdonck, Sak’s recently appointed CEO. “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.”
