Saks Global Declares Bankruptcy Following Neiman Marcus Acquisition Collapse
Luxury department store conglomerate Saks Global has filed for bankruptcy protection, marking a significant event in retail history. The filing, made late on a Tuesday, comes less than a year after the merging of Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus.
Saks Global Bankruptcy Details
The bankruptcy filing raises questions about the future of the upscale retailer. Saks Global has already confirmed that its stores will continue to operate temporarily. This announcement follows a $1.75 billion financing deal and the appointment of a new CEO.
The Impact of the COVID-19 Pandemic
Saks Global has struggled financially, never fully recovering from pandemic-related losses. Increased competition from online retailers has hurt their sales, forcing many brands to sell products directly through their own channels. Additionally, last year’s difficulties in vendor payments led to inventory shortages.
- Founded in 1867 by Andrew Saks.
- Known for exclusive brands like Chanel and Burberry.
- Assets and liabilities are between $1 billion and $10 billion.
Leadership Changes
Geoffroy van Raemdonck, the former CEO of Neiman Marcus, has taken over from Richard Baker. Baker orchestrated the controversial acquisition strategy that led to Saks Global’s current debt situation. His tenure saw missed vendor payments and liquidity issues.
Financial Recovery Efforts
Saks Global currently employs about 17,000 people. In mid-2025, the company raised $600 million to help alleviate financial pressure. However, persistent challenges have left it struggling to maintain sufficient cash flow.
| Investors and Financing | Amounts |
|---|---|
| Debtor-in-possession loan | $1 billion |
| Asset-backed loan | $240 million |
| Post-bankruptcy financing | $500 million |
Challenges in the Luxury Market
Demand for luxury goods remains strong, but Saks Global’s inventory issues and lack of vendor confidence have severely impacted sales. As more brands pursue direct-to-consumer sales, the company faces intense competition from retailers like Bloomingdale’s.
- Chanel is one of the largest unsecured creditors at $136 million.
- Kering, owner of Gucci, is owed $60 million.
- LVMH is listed as an unsecured creditor at $26 million.
As Saks Global navigates this challenging landscape, it aims to restructure its debt and explore possibilities for new ownership. The luxury department store’s fate remains uncertain as it strives to adapt to the evolving retail environment.
