Saks Global files for bankruptcy after Neiman Marcus takeover leads to financial collapse
Saks Global, the parent company of prestigious retailers like Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus, filed for bankruptcy protection on Wednesday (January 14), marking one of the largest retail collapses since the pandemic.
This comes just over a year after the merger that brought the three brands together under one corporate umbrella.
Despite the bankruptcy filing, Saks Global assured customers that its stores would remain operational for now, thanks to a $1.75 billion financing package secured early Wednesday morning.
Geoffroy van Raemdonck, the former CEO of Neiman Marcus, was appointed as the new CEO, replacing Richard Baker, who was responsible for the acquisition strategy that led to the company's current debt.
Former Neiman Marcus executives Darcy Penick and Lana Todorovich also took on key roles within the company.
The company’s bankruptcy filing in the US Bankruptcy Court in Houston revealed that its assets and liabilities range between $1 billion and $10 billion.
The filing initiates a court-supervised process, allowing the company to restructure its debt or explore the possibility of selling itself to a new owner.
If these efforts fail, Saks Global could face closure.
A storied name in luxury retail, Saks has long been associated with the rich and famous, from Gary Cooper to Grace Kelly.
However, the company’s struggles deepened following the COVID-19 pandemic as competition from online retailers surged and brands increasingly opted to sell through their own channels.
Saks' flagship store, which opened in 1867, is renowned for offering exclusive brands like Chanel, Cucinelli, and Burberry, as well as its iconic holiday light shows.
As part of the bankruptcy proceedings, Saks Global secured a crucial $1 billion in debtor-in-possession financing, led by Pentwater Capital Management and Bracebridge Capital.
In addition, the company is negotiating a $240 million asset-backed loan and anticipates gaining access to another $500 million once it emerges from bankruptcy, likely later in 2026.
The company requested an extension to file its financial statements, now due by March 13, 2026.
Among its unsecured creditors are several luxury brands, with Chanel owed approximately $136 million and Gucci’s parent company, Kering, owed $60 million.
LVMH, the largest luxury conglomerate globally, is also listed as a creditor at $26 million.
In total, Saks Global estimates it has between 10,001 and 25,000 creditors.
Baker, who oversaw the acquisition of Neiman Marcus by Hudson's Bay Co. in 2024, also played a central role in the creation of Saks Global.
The $2.7 billion deal, which included substantial debt financing and equity contributions from investors such as Amazon and Salesforce, was meant to consolidate American luxury fashion but has since weighed down the company with debt amid slowing global luxury sales.
As Saks Global navigates its financial challenges, analysts note that while wealthy consumers continue to spend, they are increasingly turning to competitors like Bloomingdale's, which saw strong sales in 2025.
To further alleviate its debt burden, Saks Global sold the real estate of its Neiman Marcus flagship in Beverly Hills last month and explored selling a minority stake in Bergdorf Goodman.
The company also missed a crucial $100 million interest payment to bondholders on December 30, 2025.
Reuters
