Saks Global filed for Chapter 11 bankruptcy protection on January 13, 2026, in the U.S. Bankruptcy Court for the Southern District of Texas, marking one of the largest retail collapses since the COVID-19 pandemic.
The luxury retailer, which operates Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, and Saks Off 5th, has secured $1.75 billion in debtor-in-possession financing to continue operations while it restructures.
The company’s approximately 17,000 employees across nearly 180 stores will continue to be paid as stores remain open during the bankruptcy proceedings. However, analysts expect significant store closures and potential layoffs as part of the restructuring process.
Mounting Luxury Brand Debts Lead Collapse
Court documents reveal the staggering extent of Saks Global’s unpaid obligations to the world’s premier luxury brands. Chanel Ltd. tops the creditor list at $136 million owed, followed by Kering SA (owner of Gucci and Balenciaga) at approximately $60 million.
Other major creditors include LVMH at $26 million, Capri Holdings at $33 million, and Richemont at roughly $30 million. The total claims from the top 30 unsecured creditors alone amount to $712 million out of Saks Global’s estimated $3.4 billion in total debt.
These delayed payments accelerated the retailer’s decline throughout 2025, as brands pulled back shipments or cancelled orders entirely, leaving store shelves looking sparse and undermining the luxury shopping experience that once defined these storied retailers.
Failed Merger Strategy Crushed by Debt
The bankruptcy filing comes barely one year after Saks completed its $2.7 billion acquisition of rival Neiman Marcus in December 2024, a deal intended to create the world’s largest luxury retailer. Instead, the merger saddled the company with approximately $2.2 billion in debt that it struggled to service even as luxury sales faltered.
Saks Global missed a critical $100 million interest payment to bondholders on December 30, 2025, triggering the final cascade toward bankruptcy. The company reported a devastating 13% revenue decline in the second quarter of 2025, falling to $1.6 billion from over $2 billion the previous year.
Throughout 2025, Saks implemented multiple rounds of layoffs totaling approximately 790 positions and closed underperforming locations, including its San Francisco flagship in May 2025 and nine Saks Off 5th stores.
Restructuring Under New Leadership
Former Neiman Marcus Group CEO Geoffroy van Raemdonck took over as CEO on January 13, replacing Richard Baker, who had stepped into the role just weeks earlier after Marc Metrick’s departure. Van Raemdonck faces the formidable challenge of mending relationships with luxury brands and securing continued merchandise shipments while navigating the bankruptcy restructuring.
At a bankruptcy hearing, Chief Restructuring Officer Mark Weinstein confirmed the company would use the approved $400 million initial tranche of financing to pay vendors and maintain operations for its 17,000-person workforce.
While stores remain open, court filings indicate Saks Global has requested to reject 26 unexpired leases and is evaluating its portfolio of 33 Saks Fifth Avenue and 36 Neiman Marcus locations for potential closures. Industry analysts anticipate approximately 20 full-line department store closures and potentially half of the roughly 100 Saks Off 5th locations could shutter as part of the reorganization.