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.
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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 number of Saks OFF 5TH branches will continue trading, concentrating mainly on leftover stock from Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.
As part of the revised approach, the group will stop buying merchandise directly for Saks OFF 5TH.
Saks Global CEO Geoffroy van Raemdonck said: “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.
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By GlobalData“With these actions, we will be well-positioned to seize the greatest opportunities for long-term growth and value creation. We sincerely thank our Saks OFF 5TH and Last Call colleagues for the important role they have played in serving our loyal customers.”
Separately, saksoff5th.com, which the company described as a legally distinct entity, has begun winding down, with its online clearance sale launching today (30 January).
During the closing period, the physical and digital off-price operations may still pursue alternative transactions should opportunities emerge.
Saks Global also said it is drawing on the first $500m of a $1.75bn funding package to underpin operations and transformation plans.
It includes payments to brand partners and speeding inventory movement within its full-price businesses.
Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman stores and websites remain open and continue to trade as normal.
