High-end retail giant Saks Global has filed for bankruptcy protection, marking one of the largest retail collapses amid the ongoing pandemic. The move comes just a year after a merger aimed at creating a luxury powerhouse, uniting Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus.
The filing has raised concerns about the future of the iconic U.S. luxury fashion brand. However, Saks has reassured that its stores will continue to operate as usual, following the finalization of a $1.75 billion financing package and the appointment of a new CEO.
The company, popular among affluent clientele, has struggled to recover from the impact of the COVID-19 pandemic. Increased competition from online retailers and brands selling directly to consumers has posed challenges. Saks faced difficulties meeting vendor payments, leading to inventory shortages.
Geoffroy van Raemdonck, former CEO of Neiman Marcus, will take over from Richard Baker, who orchestrated the acquisition that burdened Saks Global with debt. The company’s assets and liabilities are estimated to fall within the $1 billion to $10 billion range.
The bankruptcy process aims to provide Saks with the opportunity to restructure its debt or seek a new owner. Failure to do so may result in the closure of the company. Saks emphasized that the demand for luxury goods remains strong, with inventory availability and vendor confidence being the primary issues.
The acquisition of Neiman Marcus added to Saks Global’s debt at a time when luxury sales were slowing globally. Industry experts suggest that the merger was not viable in a market where luxury brands are shifting towards direct-to-consumer models.
Saks Global, with approximately 17,000 employees, had previously raised $600 million and restructured its debt in 2025 to address financial challenges. However, persistent vendor payment delays and inventory disruptions led to severe liquidity constraints in 2026.
The company’s recent struggles have driven customers towards competitors like Bloomingdale’s. Despite wealthy consumers still making purchases, Saks has experienced a decline in sales. To alleviate financial pressures, Saks Global recently sold the real estate of the Neiman Marcus Beverly Hills store and sought to sell a minority stake in Bergdorf Goodman.
A new financing deal worth $1 billion has been secured by Saks Global through a debtor-in-possession loan, with additional financing available through asset-backed loans. The company will have access to further funding of $500 million upon emerging from bankruptcy protection.
Notable luxury brands, including Chanel, Kering, and LVMH, are among the unsecured creditors, as per court filings. Observers predict that luxury brands will reduce their dependence on department stores and prioritize their direct sales channels in the wake of Saks Global’s bankruptcy.
Richard Baker orchestrated the acquisition of Neiman Marcus by Hudson’s Bay Co. in 2024, which later led to the formation of Saks Global, uniting three iconic American high fashion names under one umbrella.
