Saks to Close Most of Its Off 5th Discount Stores as Part of Bankruptcy

Saks Global, the owner of Saks Off 5th, plans to shut down almost all of its Off 5th discount stores and wind down the Off 5th e‑commerce site as part of its Chapter 11 bankruptcy restructuring.

What is happening

• Saks Global filed for Chapter 11 bankruptcy in mid‑January 2026, aiming to reorganize rather than liquidate the entire company.

• As part of that plan, the company will close all but about 12 of roughly 70 Saks Off 5th locations, meaning the off‑price chain is being largely dismantled.

• The separate SaksOff5th.com digital business is also being wound down through an inventory liquidation process approved in bankruptcy court.

Store closing timeline

• Closing and liquidation sales at 34 Saks Off 5th stores and all five Neiman Marcus Last Call outlets begin around January 31, 2026.

• Another group of 23 Off 5th stores is scheduled to close on February 2, 2026, after brief clearance sales.

• In total, 57 Off 5th stores will shut, leaving 12 locations operating as a much smaller outlet channel for excess full‑price merchandise.

What it means for shoppers

• Expect aggressive liquidation discounts on apparel, shoes, and accessories at closing Off 5th and Last Call stores over the coming weeks.

• Return, coupon, and loyalty policies may change or tighten during bankruptcy and liquidation, so it is wise to check signage or ask store staff before purchasing.

• The remaining 12 Off 5th locations will focus on clearing overflow goods from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman rather than buying separate off‑price inventory.

Why Saks is doing this

• Saks Global has struggled with heavy debt and missed a large interest payment in late 2025, which helped trigger the Chapter 11 filing.​​

• Management says shutting most off‑price operations will let the company concentrate on higher‑margin luxury retail at full‑line Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman stores.

If you’re in California

• Multiple California Off 5th locations are on the closure list, including stores in San Diego, Camarillo, Ontario, Milpitas, Palm Desert, Costa Mesa, Beverly Connection (Los Angeles), Woodland Hills, Livermore, Cabazon and Petaluma.

• Clearance events in those stores are scheduled to begin between January 31 and early February, with operations winding down in the weeks that follow.