Saks Global, a high-end department store conglomerate, filed for bankruptcy protection late on Tuesday. The move came just over a year after a deal intended to establish a major luxury retail entity.
This filing represents one of the largest retail collapses since the pandemic began. It introduces significant uncertainty regarding the future of the U.S. luxury fashion sector.
Documents submitted to the U.S. Bankruptcy Court in Houston, Texas, show the company estimated its assets and liabilities fall within a range of $1 billion to $10 billion. Prior to the filing, Saks Global carried approximately $3.4 billion in funded debt obligations. This debt includes term loan credit agreements and issued notes. A specific $275 million debt obligation related to the acquisition of Neiman Marcus is scheduled to mature in February.
The retailer stated it operates around 70 full-line luxury store locations. It also owns or holds ground leases for about 8.4 million square feet of real estate holdings and investments in the United States.
The company estimates it has between 10,001 and 25,000 creditors. Several major luxury brands are among the unsecured creditors. Chanel is listed with a claim of around $136 million. Kering, the owner of Gucci, follows with a $60 million claim. LVMH, the world's largest luxury conglomerate, is listed as an unsecured creditor owed $26 million. According to the filing, the 30 largest unsecured creditors, who are not company insiders, are collectively owed about $712 million.
Saks Global announced it will immediately receive $1 billion in cash through a debtor-in-possession loan provided by an investor group. In total, the company has secured financing commitments amounting to roughly $1.75 billion. This includes $1.5 billion from an ad-hoc group of senior secured bondholders, with the remaining portion coming from its asset-based lenders.
A leadership change was also confirmed, effective Tuesday. Richard Baker stepped down and was replaced by Van Raemdonck. Van Raemdonck previously served as Chief Executive of Neiman Marcus Group before its acquisition by Saks Global in 2024. He will be joined by Chief Financial Officer Brandy Richardson, who held the same position during his tenure at Neiman Marcus.
The bankruptcy filing indicates Saks Global employed approximately 16,830 people. Roughly 87% of these employees were full-time. About 22% of the total workforce are salaried employees, with the remainder being hourly workers. The company has requested court approval to pay approximately $140 million in owed compensation and benefits to its employees.