The owner of Saks Fifth Avenue is seeking bankruptcy protection, buffeted by rising competition and the massive debt it took on to buy its rival in the luxury sector, Neiman Marcus, just over a year ago.
Saks Global has secured roughly $1.75 billion in financing, the New York company said as filed for Chapter 11 bankruptcy Wednesday in the Southern District of Texas.
The private company said that stores will remain open as it restructures company debt, meaning that it will honor the programs it has for customers. Suppliers and employees will be paid, Saks said.
“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,” said Geoffroy van Raemdonck, who took over for CEO and Executive Chairman Richard Baker this week. Baker had assumed control after the company’s CEO Marc Metrick, stepped down earlier this month.
When Saks said that it would buy Neiman Marcus for $2.65 billion in the summer of 2024, the goal was to create a powerhouse in a luxury sector that had grown more fragmented. Online sellers were siphoning customers and big name brands had begun to sell goods from their own stores.
But the tie-up with Nieman Marcus only worsened Saks’ debt situation as luxury sales weakened.
Global sales of luxury goods are expected to contract for the second straight year in 2026 as consumers anxious about the global economy pare back their spending, according to a study by Bain & Co. consultancy released in November.
Hudson’s Bay, Canada’s oldest company, began liquidating all but six of its stores in March 2025.
The upscale department store