Luxury retail giant Saks Global has filed for bankruptcy protection, marking one of the largest retail collapses during the pandemic. This move comes shortly after a merger aimed at forming a luxury powerhouse united Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus. Despite the uncertainty surrounding the future of the iconic U.S. luxury brand, Saks has announced that its stores will continue operating, following the finalization of a $1.75 billion financing package and the appointment of a new CEO.
Saks, known for its appeal to affluent clientele, struggled to recover from the impact of the COVID-19 pandemic amidst increasing competition from online retailers and brands selling directly through their stores. The company faced challenges meeting vendor payments, leading to inventory shortages. Geoffroy van Raemdonck, former CEO of Neiman Marcus, has taken over from Richard Baker, who spearheaded the debt-heavy acquisition strategy for Saks Global.
The bankruptcy filing estimates Saks Global’s assets and liabilities to fall within the $1 billion to $10 billion range. The company’s filing emphasizes that the issue lies in inventory availability and vendor confidence rather than a lack of demand for luxury goods. The Neiman Marcus acquisition added to the company’s debt burden at a time when luxury sales were slowing globally.
Saks Global, with approximately 17,000 employees, previously raised $600 million and restructured debt in 2025 to address financial challenges. However, persistent issues with vendor payments and inventory disruptions led to severe liquidity constraints in 2026. The company’s struggle to attract shoppers, coupled with strong sales reported by competitors like Bloomingdale’s, compounded its financial troubles.
To address its cash flow issues, Saks Global recently sold the real estate of the Neiman Marcus Beverly Hills flagship store and sought to sell a minority stake in Bergdorf Goodman. The new financing arrangement includes a $1 billion cash injection through a debtor-in-possession loan and additional funding post-bankruptcy protection. Notable luxury brands, including Chanel, Kering, and LVMH, are among the unsecured creditors listed in the court filing.
Industry experts suggest that luxury brands may pivot away from department stores in favor of direct-to-consumer models and curated partnerships. Richard Baker’s strategic moves, including the Neiman Marcus acquisition, have reshaped the luxury retail landscape, bringing together longstanding pillars of American high fashion.
