Saks OFF 5TH is getting much smaller. I can confirm Saks Global is closing most Saks OFF 5TH and Last Call stores as part of a Chapter 11 restructuring. This is a major pullback in off-price luxury, and it will reshape how and where you hunt for designer deals. Liquidation sales are coming, and shoppers will have a narrow window to act.
What’s happening and why it matters
Saks Global will keep operating under Chapter 11 while it cuts debt and exits costly leases. The company is concentrating on its core luxury business, including full-price Saks Fifth Avenue stores and e-commerce. A majority of OFF 5TH and Last Call locations across the U.S. will wind down during the process. Some stores may stay open through the restructuring.
This is about focus and survival. Off-price luxury has been squeezed by softer spending, bigger rivals, and rising costs. TJX, Ross, and Nordstrom Rack have been tough on price and traffic. Saks is choosing to protect the top of the brand, not fight for every bargain bin.
Gift cards and returns will be set by the court. Expect updates soon, including deadlines and what is allowed where.
What Chapter 11 means for shoppers
Chapter 11 does not mean lights out today. Stores that remain open will keep selling. Closing locations will pivot to liquidation, with progressive markdowns. You will see “store closing” signs, broader assortments on the floor, and shorter timelines for returns.
Liquidation follows a simple pattern. Early days bring the best selection, later days bring the best prices. Designer names go first. Basics and odd sizes linger, then get very cheap. Expect third-party liquidators to manage the process, which often changes usual policies.
How to shop the sales
The right plan can save time and real money. Move fast on core sizes. Keep receipts handy. Ask at checkout about gift cards and final sale rules in that location.
- Shop early for in-demand labels, then return late for deeper cuts on leftovers
- Inspect items closely for damage, missing parts, or mismatched sizes
- Ask about stacking, some store coupons and credit perks may still apply
- Consider store fixtures, shelves and rolling racks often get priced to move
Use a credit card with strong return protection or price protection. It adds a safety net when store policies tighten. 🛍️
Why Saks is retreating from off-price
Off-price is a volume game, and it rewards scale. TJX and Ross move massive units at low cost. That scale makes marketing, logistics, and real estate more efficient. Saks OFF 5TH has brand heat, but it faced thinner margins, uneven inventory, and higher store costs. When spending on apparel slows, off-price retailers must pull even more traffic to win. That is hard without a huge nationwide footprint.
There is also brand math. Saks wants its luxury halo to shine. Discount racks can clear inventory, but too much discounting can pull attention away from full-price stores and top clients. By shrinking OFF 5TH, Saks is protecting its premium image and trimming leases that do not pay.
The move will reshuffle the outlet landscape. Nordstrom Rack picks up convenience and traffic. TJX and Ross win on depth and price gaps. In some markets, landlords will scramble to fill big boxes. Expect beauty, off-price home, and fitness tenants to kick the tires.
What stays, what goes, what’s next
Full-price Saks Fifth Avenue locations and online operations remain open. Some OFF 5TH stores will continue during restructuring. Others will begin closing sales soon, based on the court calendar and lease terms. Jobs are at risk in affected markets, and transfer options will vary.
Watch for a store-by-store list, which typically arrives as motions are filed and approved. That list will set liquidation dates, and it will spell out key rules on returns, credits, and gift cards. Keep your receipts and any digital confirmations. If you have an OFF 5TH gift card, plan to use it quickly once final policies post.
Liquidation items are often final sale. Prices may appear higher at first, then fall over time. Ask before you pay. ⚠️
The shopper playbook right now
Move on gift cards and store credits as soon as policies publish. Visit favorite locations early in the sale. Check the website for any local pickup or transfer options. If you find a must-have piece, do not wait. The best labels vanish first.
The bigger picture for luxury deals
This is a reset for luxury off-price. The quick flip model got harder as brands tightened distribution and kept more control of markdowns. Customers still love a steal, but they also expect newness and convenience. With fewer OFF 5TH doors, more clearance may flow online or back to brand-owned outlets. That could narrow in-store treasure hunts, and push value seekers toward Rack, T.J. Maxx, and Marshalls.
Saks is betting that a smaller, sharper footprint will stabilize the business. For shoppers, the near term is about timing and flexibility. There will be deals. The best ones will go fast. Bring a plan, and keep it simple.
Conclusion: Saks is retreating from off-price to defend luxury and fix its balance sheet. The Chapter 11 process will be bumpy, but it creates a window for real savings. Shop smart, shop early, and pay close attention to the rules as they land. The outlet map is changing, and your deal strategy should change with it.
