Saks bankruptcy hits Chicago shoppers with closures of four retail stores

Shoppers in Chicagoland face big changes. Saks Global plans to close four Saks Off 5th stores, according to the Chicago Business Journal. The moves stem from the company's recent Chapter 11 bankruptcy filing.

New York-based Saks Global announced the closures on Thursday, Jan. 29. The luxury retailer seeks to focus on full-price sales. It aims to cut most off-price operations after a full review.

Chicagoland stores on closure list

According to the Chicago Business Journal, the affected spots include Saks Off 5th in Rosemont, Aurora, Northbrook and State Street in downtown Chicago. Court approval is needed for the plan. A hearing was planned for Friday, Jan. 30, in the U.S. Bankruptcy Court in Texas.

In total, 57 Saks Off 5th stores and five Neiman Marcus Last Call locations will shutter nationwide. Only 12 Off 5th stores will remain open, reports AOL. Liquidation sales start soon at many sites.

Saks Global filed for bankruptcy in mid-January as the firm struggled with debt from its $2.7 billion buy of Neiman Marcus in 2024, as reported by the Business Journal. It missed a $100 million interest payment last month.

A court filing projects the Off 5th business to lose $139 million in fiscal 2025. The company decided to shrink its off-price footprint. Remaining stores will sell excess inventory.

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Geoffroy van Raemdonck returned as CEO to lead the restructuring, AOL reported. The firm secured $1.75 billion in financing. This includes $1.5 billion in debtor-in-possession funds to keep core operations running.

"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," said Geoffroy van Raemdonck, Chief Executive Officer of Saks Global, as reported by AOL News. "With these actions, we will be well-positioned to seize the greatest opportunities for long-term growth and value creation."

The luxury market faces headwinds. Shoppers shift to resale sites like The RealReal. For Chicagoland deal hunters, time is short. Blowout sales could offer deep discounts on designer goods. The changes mark a pivot for the iconic retailer.