SAKS GLOBAL FILES FOR BANKRUPTCY, STORES STAY OPEN

Luxury retail giant Saks Global—the parent company behind Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, and several off-price brands—has officially filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Texas.

The company made the announcement on Jan. 14, after struggling under a heavy debt load, especially after its expensive acquisition of Neiman Marcus in 2024. To keep the business running while it restructures, Saks Global has secured about $1.75 billion in financing. This includes $1 billion in immediate cash to support operations now and further funds to help the company reorganize and emerge from bankruptcy later.

Stores Remain Open, For Now

Stores and online shopping will remain open, so customers can still shop at Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call and Horchow. The company says it will continue honoring customer programs, pay vendors, and keep employees working during restructuring. Chapter 11 allows Saks Global to reorganize its operations and debt rather than shutting down completely.

In recent years, luxury retailers have been facing new challenges, including dealing with a more cautious customer base when it comes to spending, rising competition from online sellers and direct-to-consumer brands, and heavy borrowing, making it harder for companies like Saks Global to stay profitable.