It’s been a rough stretch for brick-and-mortar retail, and now Saks Off 5th is taking another step back as parent company Saks Global grapples with mounting debt and vendor payment issues.
In response, the discount chain is closing its New York City flagship at the end of December, and nine more stores across the country will follow early next year.
The list of stores to be closed is spread out enough to feel like a pattern rather than a one-off. Austin, Chicago, Washington D.C., the Franklin Mall store in Philadelphia, Pittsburgh North, Plymouth Meeting, East Hanover, Niagara Falls, and West Hartford are all set to wind down once January hits.
The Manhattan location at 125 East 57th Street will go first, shutting its doors on December 31. Anyone who has walked past that stretch of Midtown knows the spot. It has been a reliable stop for people hoping to find a deal without trekking to the suburbs.
Saks told USA Today that the decision ties back to tightening its overall footprint and putting more weight behind stores that still perform well. The phrasing was corporate, but the meaning was simple enough: keep the strong performers and let the others go.
What’s interesting is what’s not happening. Despite the online rumor mill, Saks Global said last month that it isn’t preparing for a Chapter 11 filing. A spokesperson called the bankruptcy talk inaccurate and added that the company is still working through payments and its broader “transformation” plan.
Saks Off 5th has roughly a hundred stores across the U.S. and Canada. The chain started life as Saks Clearinghouse in Pennsylvania before eventually going digital in 2013. It’s been through plenty of shifts since then, but closing a flagship always lands differently. It marks a moment, even if the company insists the long game is still solid.
That’s where things stand for now. Stores are shutting down, others are staying open, and a brand is trying to settle into a version of itself that still makes sense.
Source: The Independent