Saks Global Files for Chapter 11 Bankruptcy

Saks Global, the parent company of luxury retailers Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, filed for Chapter 11 bankruptcy protection late Tuesday in the U.S. Bankruptcy Court for the Southern District of Texas. The filing, announced Wednesday, allows the New York-based company to restructure its substantial debt while continuing operations across its roughly 140 stores nationwide.

The move stems from mounting financial pressures following Saks Global's 2024 acquisition of Neiman Marcus for approximately 2.65 billion dollars, a deal that saddled the company with billions in debt. Officials at Saks Global attributed the challenges to missed vendor payments, resulting in inventory shortages and declining sales, exacerbated by post-pandemic shifts toward online shopping and direct-to-consumer brand channels. The company reported assets and liabilities each estimated between 1 billion and 10 billion dollars, with more than 10,000 creditors, including major luxury brands. Despite these issues, Saks Global emphasized that underlying demand for high-end goods remains robust, driven by strong consumer confidence among affluent shoppers.