Saks Global announced Thursday it would close the majority of its Saks Off 5th retail locations and its remaining Neiman Marcus Last Call stores as the company attempts to turn around its business in Chapter 11.

In a public statement, Saks said the closures of its cut-price Off 5th stores would help the retailer sharpen its focus on the luxury market. The company will shutter about 57 Saks Off 5th stores and its five remaining Last Call locations.

"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," Saks CEO Geoffroy van Raemdonck said in the statement.

The announcement comes about a week after Saks secured bankruptcy court permission to begin liquidating its online affiliates' inventory. At a hearing Friday, U.S. Bankruptcy Judge Alfredo R. Perez gave SO5 Digital, the e-retailer for Saks Off 5th, interim permission to hire GA Retail Consultants to launch liquidation sales.

In its announcement Thursday, the company said Saks Off 5th online would also shut down and hold a closing sale starting Friday.

Saks will keep open 12 of its Off 5th stores, which will mainly sell residual inventory from Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman. It will cease buying merchandise directly for Saks Off 5th, it said in the statement.

Saks Global filed for bankruptcy protection this month with about $3.4 billion in funded debt after struggling to deal with the debt it took on to purchase Neiman Marcus more than a year ago.

It entered Chapter 11 with about $1.75 billion in committed financing from its creditors. Judge Perez on Jan. 14 allowed Saks to access about $500 million in funding as part of an interim order authorizing its debtor-in-possession financing.

In a motion filed Thursday seeking approval of the store closing sales, Saks said its Off 5th business is projected to lose $139 million in fiscal year 2025.

"While the global debtors' luxury business remains a strong platform for growth, the same may not be said of their 'off-price' businesses," it said in the motion.

A hearing on the store closing sales is set for Friday.

Saks Global is represented by Debra M. Sinclair, Todd M. Goren, Allyson B. Smith, Betsy L. Feldman, Jessica D. Graber, Jennifer J. Hardy and Ryan Blaine Bennett of Willkie Farr & Gallagher LLP and Kelli Stephenson Norfleet, Kenric D. Kattner, Arsalan Muhammad and Kourtney P. Lyda of Haynes Boone.

The case is In re: Saks Global Enterprises LLC et al., case number 4:26-bk-90103, in the U.S. Bankruptcy Court for the Southern District of Texas.