Saks’ bankruptcy filing creates uncertainty for iconic stores, suppliers and shoppers

Saks Global’s Chapter 11 bankruptcy has put its famous Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman stores in a precarious position, while creating real risk for suppliers owed large sums and limited near‑term clarity for shoppers. Stores remain open and the company has lined up financing to keep operating during restructuring, but what the business will look like after court proceedings is still unclear.

What is happening to Saks?

• Saks Global, owner of Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman and related outlets, filed for Chapter 11 protection in U.S. bankruptcy court in mid‑January 2026 after missing a more than $100 million interest payment and running low on cash.

• The group is carrying roughly several billion dollars of debt, much of it tied to its 2024 acquisition of Neiman Marcus for about $2.7 billion, which strained cash flow and made it harder to pay vendors and bondholders.

Impact on iconic stores

• Flagship luxury stores are continuing to trade for now, supported by a roughly $1.75 billion debtor‑in‑possession financing package secured as part of the bankruptcy process.

• However, because these stores depend on a carefully curated mix of third‑party luxury brands, any prolonged disruption in vendor relationships could change the assortment and potentially weaken their long‑term positioning.

Impact on suppliers and brands

• Saks Global fell badly behind on payments, leading many vendors to reduce or halt shipments in 2025, and some trade‑finance firms stopped backing new orders, leaving the retailer with thin inventory and straining relationships with brands.

• In restructuring, the company says current invoices should be paid and that overdue invoices will be prioritized within bankruptcy rules, but smaller brands in particular still face uncertainty over how much they will ultimately recover and whether to resume shipping.

What it means for shoppers

• For shoppers, stores and websites remain open, but selection may be patchy as vendors decide whether to send new merchandise, and certain designers could disappear from the floor if relationships break down.

• Gift cards and returns are generally being honored at this stage, yet future policies, store closures, or changes in loyalty programs will depend on the outcome of the court‑supervised restructuring or any sale of the business.