High-end department store conglomerate Saks Global filed for bankruptcy protection late on Tuesday, in one of the largest retail collapses since the pandemic.
It comes barely a year after a deal intended to create a luxury powerhouse brought Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus under the same roof.
The filing cast uncertainty over the future of the iconic U.S. luxury fashion brand, though Saks said early on Wednesday that its stores would remain open for now, after it finalized a $1.75-billion US financing package and appointed a new chief executive.
Long loved by the rich and famous, Saks never fully recovered from the COVID-19 pandemic, as competition from online outlets rose, and brands started selling more items through their own stores. The company struggled last year to pay vendors, who began withholding inventory.
Former Neiman Marcus department store chain CEO Geoffroy van Raemdonck will replace Richard Baker, the architect of the acquisition strategy that saddled Saks Global with debt. Baker, the executive chairman, had just stepped into the CEO role at the start of the year.
Saks Global’s assets and liabilities are estimated to be in a range of $1 billion to $10 billion, according to documents filed in U.S. Bankruptcy Court in Houston, Texas.
The original Saks Fifth Avenue store, known for carrying exclusive brands like Chanel, Cucinelli and Burberry, as well as for its Christmas light shows, was opened by retail pioneer Andrew Saks in 1867.
The court process is meant to give the luxury retailer room to negotiate a debt restructuring with creditors or find a new owner. Failing that, the company may be forced to shutter. The company, in its filing, said demand is not the problem.
“The company’s challenges are tied to inventory availability and vendor confidence, not underlying demand for luxury goods,” it said in the filing.
Neiman Marcus deal added debt
The Neiman Marcus deal added debt at a time when global luxury sales were slowing.
“In a market where luxury brands are moving direct-to-consumer and shoppers expect personalization and speed, that [merger] was always going to fail,” said Brittain Ladd, a strategy and supply chain consultant at Florida-based Chang Robotics.
Saks Global, which has about 17,000 employees, raised $600 million US and restructured debt in mid-2025 to deal with its financial woes. Persistent missed vendor payments and inventory disruptions left the company with severe liquidity constraints heading into 2026, it said.
The thinly stocked shelves may have driven shoppers away to rivals like Bloomingdale’s, which reported strong sales in 2025, compounding pressure on Saks Global.
“Rich people are still buying,” Morningstar analyst David…
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