Saks Global Files for Bankruptcy Protection After Debt Pressures

Saks Global, the parent company of luxury retailer Saks Fifth Avenue, filed for Chapter 11 bankruptcy late Tuesday as it buckles under heavy debt. The financial pressure came after it bought rival Neiman Marcus in 2024 to try to resolve money problems, only then for the deal not to work.

Even before the combination, Saks was weak. The luxury chains’ combined plan did not promise to produce enough savings to offset the high level of debt. The downturn came as a growing number of consumers have abandoned traditional department stores, an exodus that has made it more difficult for older retail brands to endure.

The high end has also cooled. Shoppers have griped about rising prices and waning quality, and a growing lot of high-end customers shop directly from the brands instead of department stores. Other major retailers have encountered similar difficulties, and Macy’s has closed many locations in recent years while Lord & Taylor went out of business.

Economic grievances have also added to the pressure. Adding to the weakness, slower job growth and low consumer confidence have caused shoppers to hold back, further weighing on sales at luxury stores.

Saks Global has struggled to pay suppliers, prompting increasing concern among vendors. In early January former CEO Marc Metrick stepped down at the company, which reportedly missed a massive debt payment. Executive chairman Richard Baker filled in briefly, but has also backed away.

Former Neiman Marcus CEO Geoffroy van Raemdonck will head the company at its go through the bankruptcy process. The filing provides Saks Global with the opportunity to rebuild and plan for the future while serving customers and brand partners without interruption, he added.

Its owner, HBC, acquired Neiman Marcus for $2.65 billion in 2024 and created Saks Global the next year. The move was intended to give the new company greater scale in luxury and more control over costs and store traffic. Instead, it was unpaid bills and the lack of cash that crippled everyday operations, and sent customers fleeing.

Retail analysts say the collapse came more quickly than they had expected. They cite cash problems that left shelves empty, sales that were slipping and a cycle the company could not break.

Saks Global said it had received $1 billion in new financing to keep the business operating during bankruptcy. And the company has been promised another $500 million once it emerges, providing funds to support a turnaround.