Saks Global is ending its discounted designer clothing, shoes, and accessories.
The store-closure announcement comes on the heels of its restructuring plans after filing for Chapter 11 bankruptcy on Jan. 14. As a result, the company is now focusing on luxury retail and full-price selling across its portfolio that includes Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.
“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 the statement.
“With these actions, we will be well positioned to seize the greatest opportunities for long-term growth and value creation.”
Of the nearly 60 stores slated to close, 12 are located in Florida, 11 in California, six in Texas, and four each in Arizona and New York. Last Call retailers to close include two each in Florida and California, and one in Texas.
Saks Global plans to keep just 12 Saks Off 5th stores open that will serve primarily as a selling channel for excess inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman. The company will be moving away from buying merchandise directly for Saks Off 5th.
Six of the remaining stores are located in Florida, two are in New York, and one each in California, Texas, New Jersey, and Georgia.
In the meantime, saksoff4th.com, a separate legal entity from Saks Global, is also beginning a wind-down of its operations. During the closing sales, the Saks Off 5th e-commerce and brick-and-mortar businesses noted they are maintaining the flexibility to pivot to alternative transactions, should any emerge.
Consumers should be aware that they may no longer buy new gift cards for Saks Off 5th or Last Call stores, and existing cards will continue to be accepted through Feb. 14. Following this period, gift cards will no longer be accepted.
Returns and exchanges for merchandise purchased before the closing sales are accepted, but all merchandise bought during the closing sales is final, with no returns or exchanges.
Both stores will continue to accept payments using SaksFirst and InCircle credit cards; however, any new purchases will not earn rewards. Existing rewards can be redeemed until March 1.
Saks Global plans to continue accessing $500 million of $1.75 billion in committed capital to support operations and transformation initiatives. This will include payments to brand partners and the inventory flow across its full-price retail brands.
Saks Global bills itself as the world’s largest multi-brand luxury retailer. Saks Global Properties & Investments includes Saks Fifth Avenue and Neiman Marcus flagship properties with nearly 13 million square feet of U.S. real estate holdings and investments in luxury markets.
