Saks Eyes Filing for Chapter 11 Bankruptcy as Soon as Sunday

Saks Global Enterprises, the parent of Saks Fifth Avenue and Neiman Marcus, is reported to be preparing a Chapter 11 bankruptcy filing as early as this Sunday, but the timing and final decision could still change. The filing would be aimed at restructuring its heavy debt load while keeping stores operating under court protection.​

What is reportedly happening

• Saks Global is planning a Chapter 11 bankruptcy protection filing “as soon as Sunday,” according to multiple reports citing people familiar with the matter.​

• The company is moving toward Chapter 11 without a finalized restructuring agreement, expecting to negotiate terms with creditors in the weeks after filing.​

• Reports emphasize that plans are still “in flux,” meaning the exact timing or even whether a filing happens this weekend is not guaranteed.​

Why Saks is in trouble

• Saks Global has been struggling under a large debt burden taken on to fund its 2024 merger of Saks Fifth Avenue and Neiman Marcus, as well as earlier real-estate-driven deals.​

• A slowdown in luxury spending, inventory shortages, and strained relationships with brands and vendors have pressured sales and cash flow.​

• The company reportedly missed a roughly $100 million interest payment, which pushed it to explore bankruptcy options.​

What Chapter 11 would mean

• Chapter 11 is a U.S. court-supervised restructuring process that allows a company to keep operating while it renegotiates debts and possibly closes underperforming stores.​

• Saks is said to be negotiating around $1.25 billion in debtor‑in‑possession (DIP) financing that would fund operations, pay vendors, and support the bankruptcy process.​

• If sufficient financing cannot be secured, some reports note that a shift to liquidation (Chapter 7) could become more likely, though that is not the company’s stated goal.​

Who and what are affected

• Saks Global controls Saks Fifth Avenue, Neiman Marcus, and, in some reports, Bergdorf Goodman, making this one of the most high‑profile U.S. department‑store insolvencies since the pandemic.​

• The iconic Fifth Avenue flagship in New York is considered a critical and highly valuable asset, so stakeholders will be keen to preserve its operations under any restructuring.​

• Shoppers have reportedly begun rushing to redeem gift cards and loyalty perks amid concern over the company’s financial condition, though stores remain open at this stage.​

Key uncertainties to watch

• Whether Saks actually files on Sunday or delays while it finalizes DIP financing and negotiations with major creditors.​

• How many stores, if any, are closed as part of a restructuring plan, and what happens to employees and vendor relationships.​

• Whether the business emerges as a leaner reorganized retailer under Chapter 11 or is forced into deeper asset sales or liquidation if financing falls through.​