Saks Fifth Avenue flagship store in New York City amid luxury retail financial challenges

Saks Global Files for Bankruptcy as Luxury Retail Struggles with Debt and Falling Sales

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SAMANTHA COLE

BUSINESS16 JAN, 2026

The luxury department store conglomerate Saks Global filed for bankruptcy protection on Tuesday in one of the most significant retail failures since the pandemic, less than a year after a merger that integrated Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus under a unified entity.

The company initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas, according to a news release. It stated that it will endeavor to honor all customer programs, ensure ongoing payments to vendors, and maintain employee payroll and benefits. Its retail locations continue to operate.

The move introduced uncertainty regarding the future of US luxury fashion, although the retailer announced early Wednesday that its stores would remain open for the time being after securing a $1.75 billion financing package and appointing a new CEO.

Shoppers outside Saks Fifth Avenue store during peak luxury retail shopping period

The announcement follows Saks' failure to make a $100 million interest payment due on December 30, which was associated with its $2.65 billion acquisition of Neiman Marcus in 2024. Saks Global’s chief executive, Marc Metrick, resigned days later, concluding nearly three decades of service with the company.

His successor, Executive Chairman Richard Baker, served in the position for less than two weeks before announcing his departure from the company.

The former Neiman Marcus CEO, Geoffroy van Raemdonck, will succeed Richard Baker, who was the architect of the acquisition strategy that resulted in Saks Global being burdened with debt.

The former Neiman Marcus CEO, Geoffroy van Raemdonck, will succeed Richard Baker, who was the architect of the acquisition strategy that resulted in Saks Global being burdened with debt. “This is a defining moment for Saks Global, and the path ahead presents a meaningful opportunity to strengthen the foundation of our business and position it for the future,” stated van Raemdonck in the Saks announcement. “In close partnership with these newly appointed leaders and our colleagues across the organization, we will navigate this process together with a continued focus on serving our customers and luxury brands. I look forward to serving as CEO and continuing to transform the Company so that Saks Global continues to play a central role in shaping the future of luxury retail.” This optimistic message arrives as the company commences voluntary Chapter 11 proceedings with support from key stakeholders, aiming to restructure debt while continuing normal operations across Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, and other banners.

The fact that Saks Global went bankrupt is a clear sign that even the most famous names in American luxury retail are having a hard time adapting. The merger of Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus was supposed to make the company bigger and more stable, but it actually made it more debt-ridden at a time when luxury department store sales are slowing and brands are moving sales online and to their own stores.

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“This is a defining moment for Saks Global, and the path ahead presents a meaningful opportunity to strengthen the foundation of our business and position it for the future.”

“They borrowed a lot more money than they should have for a company that isn’t growing — it’s a slow-melting ice cube,” remarked Tim Hynes, the global director of credit research at Debtwire. “If you have declining sales, you have to have a lot of cushions, and if you don’t … that’s how you wind up getting in trouble.”

The merger between Saks and Neiman Marcus was intended to strengthen both retailers amid the ongoing decline in the prominence of department stores and the growing reluctance of consumers to spend on non-essential items. During the holiday shopping period, transactions at luxury department stores from Black Friday to Cyber Monday declined by 10 percent compared to the same four-day period the previous year, according to Consumer Edge, which monitors transaction data on U.S. credit and debit cards.

Saks Global reported second-quarter revenue of $1.6 billion in October, reflecting a decrease of over 13 percent compared to the previous year. It has also experienced delays in vendor payments, resulting in stores offering a limited selection of products, according to Debtwire and other news reports.