A Major Retail Chain Unexpectedly Closed Most Of Its Locations In 2026

Retail conglomerate, Saks Global, is no longer the fashion powerhouse it used to be — at least, that's the case if you're looking at the company's January 2026 bankruptcy filing and subsequent string of store closures. While some Saks Fifth Avenue locations remains open, as of June 2026, the luxury retailer's well-known discount division has fallen on harder times. While some companies come roaring back from bankruptcy, in January 2026, Saks Global instead announced it would shut down most of its lower tier stores, including the majority of its Saks Off Fifth locations and all Last Call stores. Over 50 Saks Off Fifth locations were slated for closure and, even more surprising, 23 of them did not even host closing sales, instead simply shutting down just days after the announcement. The store's e-commerce website, Saksoff5th.com, also shut down operations.

Only 12 Saks Off Fifth stores remain, as of June 2026, down from 107 stores in 2016 (per Business of Fashion). These surviving stores are also slated to operate differently than in the past — rather than having its own merchandise, all remaining locations will instead sell excess inventory from Saks Global's retail lineup. This includes overstock from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, and marks a significant departure from the stores' traditional off-price model which relied on sourced merchandise and vendor partnerships.

Saks Global was facing bankruptcy for several months before eventually filing, but the company's financial struggles existed long before that. Saks has changed ownership and restructured multiple times over the years. Its bankruptcy filing arrived less than two years after the acquisition of retail rival, Neiman Marcus, for $2.65 billion in July 2024. This deal wound up saddling Saks Global with significant debt during a slowdown in luxury spending – with consumers shifting to more practical goods and experiences over expensive products. This is part of why the conglomerate's decision to eliminate its discount stores was so surprising. On top of this, Saks sent a letter to 2,000 vendors in February 2025 announcing a new payment plan that required vendors to wait 90 days for payments from the company, instead of 60. This move ended up highlighting the reality that many of Saks' vendors had already been waiting for payments after severe delays.

There is also the fact that brick and mortar clothing stores have faced mounting pressure with the rise of online shopping. This has left stores facing decreased foot traffic and has contributed to the closure of multiple fashion brands. After the events of 2026, only time will tell if Saks Global's remaining stores will be enough to keep the company around.