Saks Global files for bankruptcy after Neiman Marcus takeover leads to financial collapse

Saks Global, the parent of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, has filed for Chapter 11 bankruptcy protection in the US after its debt‑funded takeover of Neiman Marcus left it unable to meet its obligations. Stores and websites are expected to stay open while the company restructures and seeks to cut or refinance its debts.​

What happened

• Saks Global filed voluntary Chapter 11 cases in U.S. Bankruptcy Court in Houston late Tuesday, in one of the largest luxury retail failures since the pandemic.​

• Court filings show Saks Fifth Avenue listed an estimated $1$–$10$ billion dollars in both assets and liabilities.​

Role of the Neiman Marcus takeover

• In 2024, Hudson’s Bay (Saks’ owner) merged Saks with Neiman Marcus in a deal of about $2.6$–$2.7$ billion dollars, largely financed with roughly $2$ billion dollars of new debt and additional investor funding.​

• The acquisition was pitched as creating a luxury powerhouse, but the added leverage became unsustainable amid weakening department‑store traffic and slower global luxury demand.​

Why the collapse accelerated

• Saks Global missed a 100 million dollar interest payment in December, triggering a 30‑day grace period and putting bankruptcy on the table when it could not cure the default.​

• Suppliers tightened terms or halted shipments after delayed payments, which reduced product availability and hurt sales, further straining cash flow.​

Financing during bankruptcy

• Saks Global says it has secured about 1.75 billion dollars in debtor‑in‑possession and related financing from bondholders and asset‑based lenders to fund operations during restructuring.​

• The package includes an initial 1 billion dollar cash infusion from an investor group led by Pentwater Capital Management and Bracebridge Capital, plus additional asset‑backed lending and exit financing commitments.​

What it means for shoppers and brands

• Saks Global expects Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH and related e‑commerce sites to remain open and to honor gift cards and loyalty programs while under Chapter 11.​

• Major luxury labels such as Chanel, Kering brands, and LVMH are listed as unsecured creditors, with tens of millions of dollars owed, and their future exposure will depend on how the restructuring plan treats trade claims.​