Saks Global, the longtime leader of luxury department stores, files for bankruptcy protection
Saks Global, the storied parent company of luxury department stores Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, has filed for Chapter 11 bankruptcy protection after exhausting its cash reserves and failing to secure new investors. The 159-year-old retailer announced Wednesday it has obtained a $1.75 billion financing commitment to stabilize operations during restructuring.
The filing follows weeks of speculation after the company missed an interest payment to bondholders last month. Former Neiman Marcus CEO Geoffroy van Raemdonck has been appointed to lead the company, replacing Richard Baker after just two weeks in the role.
The bankruptcy proceedings will determine the fate of nearly 200 retail locations across its portfolio. Potential outcomes range from a strategic buyer acquiring the entire business to a partial liquidation, store closures, or a transition to an online-only model for some brands.
A Downward Spiral Fueled by Debt and Operational Missteps
Saks's collapse traces back to its heavily debt-financed $2.7 billion acquisition of rival Neiman Marcus in 2024. Despite initial backing from tech giants like Amazon and Salesforce, the merger failed to deliver the promised turnaround. The company struggled to pay vendors even before the deal, briefly improved, then alienated brands by imposing stringent 90-day payment terms, leading to diminished inventory and sales.
Efforts to raise capital over the summer—including $600 million in new financing and the sale of key real estate—proved insufficient to avert bankruptcy. The newly secured debtor-in-possession financing was critical; without it, the company faced a likely Chapter 7 liquidation.
The coming weeks will clarify whether this iconic luxury retail group can reorganize and emerge with a viable future or be broken apart in a landmark industry shakeup.
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