Saks Global has outlined plans to close most of its off-price outlets as it restructures under Chapter 11, concentrating on luxury and full-price retail across its brands. The US-based luxury retailer said it plans to close most of its Saks OFF 5TH shops alongside all remaining Last Call outlets after reviewing the performance of those divisions. Subject to court approval, liquidation sales at selected Saks OFF 5TH locations and every Last Call store are scheduled to start on 31 January. A limited numb ...

Core Viewpoint - Saks Global Enterprises, owner of Saks Fifth Avenue and other luxury retail brands, has filed for Chapter 11 bankruptcy protection, highlighting that even high-end retailers are not immune to economic challenges [1] Group 1: Bankruptcy Filing Details - Saks Global announced its Chapter 11 filing in the U.S. Bankruptcy Court for the Southern District of Texas on January 14, 2026, and has secured $1.75 billion in financing commitments to support its turnaround efforts during the bankruptcy process [2] - The company has appointed Geoffroy van Raemdonck as the new CEO, taking over from Richard Baker immediately [3] Group 2: Reasons for Bankruptcy - Saks Global is facing challenges similar to other retailers, including higher tariffs, inflation, online competition, and reduced discretionary spending by consumers [4] - The company has reported assets and liabilities between $1 billion and $10 billion, with a significant debt burden exacerbated by the acquisition of Neiman Marcus for approximately $2.7 billion in 2024 [4][5] - Saks Global owes substantial amounts to major fashion brands, including around $136 million to Chanel, $60 million to Kering, and $26 million to LVMH [5] Group 3: Company Overview - Saks Global's most recognized brand is Saks Fifth Avenue, established in 1867, and it also owns other retailers such as Bergdorf Goodman, Saks Off 5TH, Last Call, Horchow, and Neiman Marcus [6] - CEO Geoffroy van Raemdonck described the bankruptcy process as a defining moment for Saks Global, presenting an opportunity to strengthen the business's foundation for the future [7]