Saks Off 5th Shutting Most Locations: NEW YORK — The company that owns Saks Fifth Avenue and Neiman Marcus is shutting most of its Saks Off 5th stores. The reason? They want to focus on their main luxury stores and pay off debt while going through bankruptcy.
Right now, there are 70 Saks Off 5th stores. The company plans to keep only 12 open. These remaining stores will mostly sell leftover items from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.
The company is also closing the five Last Call stores, which were discount stores for Neiman Marcus.
Online Store and Sales Changes
Saks Off 5th’s website, Saksoff5th.com, is also closing. The company says it will stop buying items specifically for these outlet stores.
Starting this weekend, some Saks Off 5th stores and all Last Call stores will have big going-out-of-business sales. The online store already started its sale on Friday, with discounts up to 85% off.
Why This Is Happening
Saks Global filed for Chapter 11 bankruptcy on January 14. The company says the main reasons are growing competition and the huge debt it took on when it bought Neiman Marcus a little over a year ago.
To help with the bankruptcy, Saks Global got around $500 million from a $1.75 billion financial package. This money will be used to pay suppliers, who are very important for keeping the stores stocked with merchandise.
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Geoffroy van Raemdonck, CEO of Saks Global, said the company is “taking decisive steps to focus on luxury customers and selling full-price items in our main stores.”
What Do You Think?
Saks Off 5th is shutting down most of its stores and website, which is a huge shift for consumers. What are your thoughts on whether this will make Saks Fifth Avenue and Neiman Marcus better in the long run?
Comment below with your thoughts!
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