Saks Global, the owner of Saks Fifth Avenue and also operator of Bergdorf Goodman, filed for Chapter 11 bankruptcy on Wednesday in the Southern District of Texas, setting out a plan to restructure its debt after taking on financing tied to its purchase of Neiman Marcus.
The privately held company said it secured roughly $1.75 billion in financing for the restructuring. In a statement accompanying the filing, Saks Global said its stores will remain open during the process and that it will honor customer programs. The company also said suppliers and employees will be paid.
Saks Global said it operates about 33 Saks stores and 36 Neiman Marcus locations, along with two Bergdorf Goodman stores and roughly 70 Saks Off 5th discount stores. The company described the filing as part of its effort to “strengthen the foundation of our business and position it for the future,” with Geoffroy van Raemdonck saying, “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,” according to the company.
Van Raemdonck took over for CEO and Executive Chairman Richard Baker this week, the report said. The Associated Press said Baker assumed control after the company’s CEO, Marc Metrick, stepped down earlier this month.
The bankruptcy comes a little more than a year after Saks said it would buy Neiman Marcus for $2.65 billion in the summer of 2024, aiming to create a powerhouse in the luxury sector as competition intensified and online sellers siphoned customers. The AP said Saks’ debt burden grew after the acquisition, and that Saks had been having trouble paying suppliers before, including stretching out payment periods by last year—actions suppliers said angered brands and frayed relationships.
Neil Saunders, managing director of GlobalData Retail, said the deal’s structure made the bankruptcy more likely, but he was surprised by how quickly it happened. In a written comment, Saunders said, “Behind the glossy facade the deal was an entanglement of complex financial engineering that made it impossible for the group to execute their stated vision,” the AP reported.
The pressure on retailers extends beyond Saks. A Bain & Co. consultancy study released in November forecast that global sales of luxury goods are expected to contract for the second straight year as consumers, anxious about the economy, pare back spending. The AP cited recent retail failures and restructurings, including Hudson’s Bay beginning liquidation of all but six stores in March 2025, Neiman Marcus entering bankruptcy protection for about four months in 2020, and Lord & Taylor seeking bankruptcy protection in August 2020 before saying it would close all stores and operate as an online retailer only.
Department stores and specialty retailers have faced a broader wave of filings as well. The report said Nordstrom agreed to be taken private in a $6.25 billion deal last year. It also said sales at Macy’s have begun to improve under CEO Tony Spring, after store closures. Separately, the AP said S&P Global Market Intelligence counted 785 bankruptcies last year, marking the third consecutive annual increase and the highest total since 2010, with retailers having the second-largest concentration of filings.
Vendors described uncertainty around ongoing deliveries and payments. Gary Wassner, CEO of Hilldun Corp., which ensures suppliers get paid for products shipped to retailers, said suppliers were “very nervous, very concerned, very worried about spring deliveries for merchandise that they’ve already produced,” and he said that Saks was unable to complete deliveries on what had been produced for the fourth quarter of 2025, leaving suppliers “sitting with that inventory.” Wassner said Saks Global accounted for 40% to 50% of the business of some clients, and that he told clients to stop shipping to Saks last month because of uncertainty. He said those clients have $130 million in spring orders waiting to be delivered and want payment guarantees from Hilldun first.
Saks, according to the AP report, said it has financing commitments of $1.5 billion from some creditors and another $240 million in incremental liquidity from its lenders. In the bankruptcy filing, Saks Global listed $1 billion to $10 billion in assets and liabilities, and the report said Chanel was listed as having an unsecured claim of roughly $136 million among the company’s 30 largest unsecured claims that were not insiders. The AP also said Kering had an unsecured claim of $59.9 million in the filings.