Saks Off 5th, the discount outlet of Saks Fifth Avenue known for offering luxury fashion at reduced prices, is set to close nearly all its locations nationwide, including two in Maryland.
Starting Saturday, the stores in Hanover and Clarksburg will begin their closing sales, as reported by Cox Media.
Only 12 stores will remain open across the United States, located in New York, Florida, New Jersey, California, and Texas.
This business, a part of Saks Global with roots dating back to the 1990s, will also be discontinuing its online operations at saksoff5th.com, where customers can currently find discounts of up to 85 percent.
The closures are part of Saks Global’s strategy to “refocus on luxury retail and full-price selling within its esteemed portfolio,” as stated in a recent announcement. Earlier this month, the company filed for Chapter 11 bankruptcy.
The Saks Off 5th stores closing in Maryland are located at Arundel Mills Mall in Hanover and Clarksburg Premium Outlets in Montgomery County.
“We are deeply thankful for the loyalty our Saks OFF 5TH and Last Call customers have shown over the years and appreciate being part of your shopping experience,” Saks Global expressed on their website.
In a significant move, Saks announced plans to acquire Neiman Marcus for $2.65 billion in the summer of 2024, aiming to strengthen its position in a luxury market that has become increasingly fragmented. Online retailers have been drawing customers away, while many prestigious brands have expanded their own retail presence.
However, this acquisition has added to Saks’ already heavy debt load, as luxury sales have been declining. The company faced challenges in paying suppliers, leading to extended payment terms that frustrated brands and strained partnerships.
According to the bankruptcy filing, the company reported assets and liabilities ranging from $1 billion to $10 billion.
Reporting contributed by Patch editor Anna Schier and the Associated Press
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