Saks Global Files for Bankruptcy, Undone by Debt and a Luxury Slump

Saks Global, the parent of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, has filed for Chapter 11 bankruptcy protection in the US after missing key debt payments and running out of cash, and will attempt to restructure rather than immediately liquidate. Stores and ecommerce are expected to remain open for now as the company secures new financing and negotiates with creditors.​

What has happened?

• Saks Global filed for voluntary Chapter 11 bankruptcy protection late Tuesday, listing an estimated USD 1 billion–10 billion in both assets and liabilities in court documents.​

• The filing follows a missed interest payment of about USD 100 million in late December on roughly USD 2.2 billion of debt tied largely to its 2024 takeover of Neiman Marcus.​

• The Chapter 11 process is intended to allow the company to keep operating while it restructures its debt and business, rather than closing immediately.​

Why did Saks Global collapse?

• The 2024 deal that combined Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman into Saks Global left the new group heavily leveraged, with about USD 2.2 billion in fresh debt and ambitious cost‑saving targets.​

• As global luxury spending cooled in 2025, especially among aspirational and younger shoppers, Saks struggled with weaker sales, falling margins, and growing difficulty paying vendors and servicing debt.​

• Vendors halted or delayed shipments after late payments, which reduced product availability, hurt sales further, and deepened the cash squeeze.​

What financing has Saks secured?

• Saks Global says it has lined up about USD 1.75 billion in new debtor‑in‑possession and related financing from a group of bondholders and asset‑backed lenders.​

• This package, led by investors such as Pentwater Capital and lenders headed by Bank of America, is meant to provide enough liquidity to operate stores and websites and fund the restructuring process.​

What happens to stores, staff, and customers?

• The company has said that all Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman stores, as well as their online channels, will continue to trade during the Chapter 11 process.​

• Gift cards and loyalty programmes are expected to remain valid at this stage, though future changes could depend on court approvals and the final restructuring plan.​

• Some store closures, job cuts, and renegotiation or exiting of leases are likely as Saks seeks to cut costs and focus on its most profitable locations.​

What does this mean for luxury retail?

• The bankruptcy is one of the highest‑profile collapses in US retail in recent years and highlights the pressure on traditional department‑store models as luxury consumers shift more spending online and toward mono‑brand boutiques.​

• Industry analysts see Saks’ fall as a warning that heavily debt‑financed roll‑ups of legacy retailers are risky in a slowing luxury cycle, even when assets are prestigious and brands are well known.​

• Competitors like Nordstrom and Bloomingdale’s have also faced challenges, but so far have avoided similar large‑scale bankruptcies, underscoring how capital structure and execution can determine outcomes in a soft luxury market.​