Saks Global, the New York company that owns Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, filed for Chapter 11 bankruptcy protection Wednesday in the Southern District of Texas, less than 18 months after completing a $2.65 billion acquisition of Neiman Marcus that compounded already significant debt. The company said it has secured roughly $1.75 billion in financing and that its stores will remain open and continue to honor customer programs during restructuring.
The bankruptcy leaves suppliers holding approximately $130 million in spring merchandise they cannot safely ship without payment guarantees, and places Chanel — the company’s largest unsecured creditor at roughly $136 million — and luxury group Kering, owed $59.9 million, at the head of a substantial creditor queue. The collapse adds to a wave of retail bankruptcies that S&P Global Market Intelligence tallied at 785 in 2025, the highest annual total since 2010.
Saks Global said it has financing commitments of $1.5 billion from existing creditors and an additional $240 million in incremental liquidity from its lenders. Suppliers and employees will be paid, and the company said it will honor its customer programs, including loyalty accounts and gift cards, during the restructuring. Saks Global operates approximately 33 Saks stores, 36 Neiman Marcus locations, two Bergdorf Goodman stores, and roughly 70 Saks Off 5th discount stores.
Geoffroy van Raemdonck took over as chief executive this week from Executive Chairman Richard Baker, who had assumed control after Marc Metrick, the previous chief executive, stepped down earlier this month.
“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,” van Raemdonck said.
Supplier exposure and creditor claims
The bankruptcy filing listed total assets and liabilities in the range of $1 billion to $10 billion. Court documents identified Chanel as the top creditor among the company’s 30 largest unsecured non-insider claimants, with a claim of roughly $136 million. Kering — the French luxury conglomerate that owns Gucci, Saint Laurent, and Balenciaga — ranked second at $59.9 million.
Vendors supplying Saks face particular uncertainty. Gary Wassner, chief executive of Hilldun Corp., which provides payment guarantees to suppliers shipping goods to retailers, said his clients were already in financial limbo.
“They’re very nervous, very concerned, very worried about spring deliveries for merchandise that they’ve already produced,” Wassner said. “They weren’t able to complete deliveries on what they had produced for the fourth quarter of (2025), so they’re sitting with that inventory.”
Wassner said Saks Global accounts for 40% to 50% of the business of some of his clients. He said he told clients to stop shipping to Saks last month in response to the uncertainty. Those clients now hold $130 million in spring orders awaiting delivery to Saks locations, but are seeking payment guarantees from Hilldun before resuming shipments.
The Neiman Marcus deal and its unraveling
When Saks announced its acquisition of Neiman Marcus for $2.65 billion in summer 2024, the stated goal was to create a combined luxury powerhouse in a market increasingly fragmented by online sellers and brands expanding their own retail footprints. Instead, the acquisition compounded debt that was already proving difficult to service, and Saks began stretching payment periods to suppliers before the deal closed — straining relationships with major brands.
Neil Saunders, managing director of GlobalData Retail, said he was unsurprised by the outcome, though not by the pace at which it arrived.
“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,” Saunders said.
Broader retail and luxury market context
Saks Global’s filing arrives during a period of elevated corporate bankruptcies. S&P Global Market Intelligence counted 785 filings in 2025, the third consecutive annual increase and the highest total since 2010, with retailers accounting for the second-largest concentration of cases among all sectors.
Global luxury goods sales are expected to contract for the second consecutive year, as consumers pull back spending amid economic anxiety, according to a Bain & Co. study released in November 2025.
The sector has seen repeated stress in recent years. Hudson’s Bay, Canada’s oldest company, began liquidating all but six of its stores in March 2025. Neiman Marcus itself spent roughly four months under Chapter 11 protection in 2020 during the pandemic before emerging. Lord & Taylor filed for bankruptcy in August of that year and subsequently closed all its physical locations. Department store chain Nordstrom agreed to be taken private in a $6.25 billion deal in 2025. Macy’s has seen sales stabilize under chief executive Tony Spring, but only after he closed underperforming stores.
Mall staple Claire’s and craft retailer Joann also filed for bankruptcy in recent months, according to the Associated Press.