Saks Global files for bankruptcy after financial collapse following Neiman Marcus acquisition
High-end department store group Saks Global filed for bankruptcy protection late Tuesday, one of the biggest retail collapses since the pandemic.
This comes barely a year after Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus were brought under one roof with the intention of creating a luxury powerhouse.
The filing has created uncertainty over the future of the iconic US luxury fashion brand, although Saks said on Wednesday morning that its stores would remain open for now, after finalizing a $1.75 billion US financing package and appointing a new chief executive.
Long favored by the rich and famous, Saks never fully recovered from the COVID-19 pandemic, as competition from online outlets increased and brands began selling more items through their stores. The company struggled last year to pay vendors, who began holding onto inventory.
Former Neiman Marcus department store chain CEO Geoffroy van Raemdonck will replace Richard Baker, the architect of the acquisition strategy that left Saks Global burdened with debt. Acting Chairman Baker stepped into the CEO role at the beginning of the year.
According to documents filed in the U.S. Bankruptcy Court in Houston, Texas, Sachs Global’s assets and liabilities are estimated to be in the range of $1 billion to $10 billion.
The original Saks Fifth Avenue store, known for exclusive brands like Chanel, Cucinelli and Burberry as well as its Christmas light show, was opened in 1867 by retail pioneer Andrew Saks.
The court process is aimed at giving the luxury retailer a chance to negotiate debt restructuring with creditors or find a new owner. If this does not happen, the company may be forced to close down. The company said in its filing that demand is not a problem.
“The company’s challenges are related to inventory availability and vendor confidence, not underlying demand for luxury goods,” the filing said.
Neiman Marcus deal adds debt
The Neiman Marcus deal added debt at a time when global luxury sales were slowing.
“In a market where luxury brands are going direct to consumer and shoppers expect personalization and speed, that (merger) was always going to fail,” said Brittain Ladd, strategy and supply chain consultant at Florida-based Chang Robotics.
Sachs Global, which has about 17,000 employees, raised US$600 million and restructured debt due in mid-2025 to deal with its financial crisis. It said persistent vendor payment defaults and inventory disruptions have left the company with severe liquidity constraints in 2026.
Barely stocked shelves may have drawn shoppers to rivals like Bloomingdale’s, which reported strong sales in 2025, adding to the pressure on Saks Global.
“Rich people are still buying,” Morningstar analyst David Swartz said last month, “just not so much at Sachs.”
Running out of cash, Saks Global sold the real estate of the Neiman Marcus Beverly Hills flagship store last month for an undisclosed amount. It was also considering selling a minority stake in specialty department store Bergdorf Goodman to help cut debt.
financing deal
Sachs Global said the new financing deal would provide an immediate cash infusion of $1 billion through a debtor-in-possession loan from an investor group.
According to the company, the $240 million financing will be available through asset-backed loans provided by the company’s asset-based lenders.
The luxury retailer will receive access to $500 million in financing from the investor group after successfully exiting bankruptcy protection later this year, Saks Global said.
The petition filed in court said unsecured creditors included several luxury brands, led by Chanel with about $136 million and Gucci owner Kering with $60 million. LVMH, the world’s largest luxury conglomerate, was listed as an unsecured creditor on $26 million. Overall, Sachs Global estimates that there were between 10,001 and 25,000 creditors.
Paris-based Kering, which also owns brands such as Yves Saint Laurent and Baleniaga, declined to comment. Chanel, LVMH and Richemont did not respond to requests for comment.
“For the broader luxury industry, this accelerates an existing trend: Brands will reduce reliance on department stores, strengthen wholesale exposure and prioritize owned channels and curated partnerships,” Ladd said.
In 2024, Richard Baker planned the acquisition of Neiman Marcus by Canada’s Hudson Bay Company, which had owned Saks since 2013, and later spun off the US luxury assets to form Saks Global, bringing together the three names that have defined American high fashion for more than a century.
