Saks Global plans to shutter most of its Sak Off 5th stores as the bankrupt retailer looks to slash costs and cater to higher-income customers.

The company said on Thursday that it will close all but 12 of its 70 Saks Off 5th locations. The remaining outlets will serve primarily as a selling channel for residual inventory from Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.

Saks, which also owns department store chains Neiman Marcus and Bergdorf Goodman, filed for Chapter 11 protection from its debts earlier this month.

"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 CEO Geoffroy van Raemdonck said in a statement.

Saks Global on Saturday will begin going-out-of-business sales at certain Saks Off 5th locations, subject to bankruptcy approval, and all Last Call locations. It's already started going-out-of-business sales on Saksoff5th.com on Friday. The site showed up to 85% off on merchandise.

Saks said it will wind down Saksoff5th.com, a separate legal entity from Saks Global. Consequently, Saks Global said it will move away from purchasing merchandise directly for Saks Off 5th.

The company will also close the remaining five Last Call stores, which are outlet locations that serve as a discount channel for Neiman Marcus.

Saks opened its first store in New York City in 1924. The company expanded quickly between the 1970s and 1990s before it was purchased by Hudson's Bay in 2013. But ike other brick-and-mortar retailers, the company has struggled to drive growth amid the rise of e-commerce.

More than 8,100 stores closed across the U.S. in 2025, up roughly 12% from the previous year, according to retail industry analytics firm Coresight Research.

More recently, Saks has been burdened by heavy debt after buying rival luxury retailer Neiman Marcus in 2024 for $2.65 billion.

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