Saks Global, the owner of Saks Fifth Avenue, filed for Chapter 11 bankruptcy protection on Wednesday in the Southern District of Texas. The company, which also operates Bergdorf Goodman and Neiman Marcus, cited increasing competition and significant debt from its acquisition of Neiman Marcus just over a year ago.
In its filing, Saks Global announced it has secured approximately $1.75 billion in financing. The privately held company stated that its stores will remain open during the restructuring process. Suppliers and employees will continue to be paid, and customer programs will be honored, according to the company.
The retail group operates about 33 Saks stores, 36 Neiman Marcus locations, two Bergdorf Goodman stores, and roughly 70 Saks Off 5th discount outlets. Geoffroy van Raemdonck, who took over as CEO and Executive Chairman this week, called this "a defining moment for Saks Global." He said the path ahead presents an opportunity to strengthen the business foundation.
Saks had acquired Neiman Marcus for $2.65 billion in the summer of 2024, aiming to create a powerhouse in a luxury sector that had grown more fragmented. Online sellers have been drawing customers away, and major brands expanded their own store networks. However, the acquisition added to existing debt as luxury sales weakened.
Neil Saunders, managing director of GlobalData Retail, said the debt-fueled acquisition made bankruptcy more likely. "Behind the glossy facade the deal was an entanglement of complex financial engineering that made it impossible for the group to execute their stated vision," Saunders wrote on Wednesday.
According to a November study by Bain & Co. consultancy, global luxury goods sales are expected to contract for the second straight year as consumers reduce spending. Other retailers have faced challenges: Hudson's Bay began liquidating most stores in March 2025, Neiman Marcus entered bankruptcy protection in 2020, and Lord & Taylor sought protection that same year.
Vendors expressed concern about Saks. "They're very nervous, very concerned, very worried about spring deliveries for merchandise that they've already produced," said Gary Wassner, CEO of Hilldun Corp. His clients have $130 million in spring orders waiting for Saks, but want payment guarantees first. Wassner said Saks Global accounted for 40% to 50% of some clients' business.
Saks said it has $1.5 billion in financing commitments from creditors and $240 million in additional liquidity from lenders. Bankruptcy documents show the company listed $1 billion to $10 billion in assets and liabilities. Chanel tops the list of unsecured claims at approximately $136 million, followed by Kering with $59.9 million.
Bankruptcies are rising across sectors, with S&P Global Market Intelligence counting 785 last year, the highest total since 2010. Retailers had the second largest concentration of filings. While Americans continue to spend, extended inflation has pushed many retailers into bankruptcy courts, including Claires and Joann in recent months.