At a Glance
- Saks Global, owner of Saks Fifth Avenue and Neiman Marcus, filed for Chapter 11 bankruptcy in Texas
- The company secured $1.75 billion in financing commitments to stay afloat
- Leadership turmoil continues with three CEO changes in weeks
- Why it matters: Luxury shoppers and retail employees face uncertainty amid restructuring
Luxury retail giant Saks Global has sought bankruptcy protection in Texas after piling on debt from its $2.65 billion Neiman Marcus takeover last year. The Chapter 11 filing, announced Wednesday, comes as the company scrambles to reorganize amid fierce competition and cautious consumer spending.
Leadership Exodus
The company’s top executive, Marc Metrick, stepped down earlier this month as the firm struggled with debt it took on for its $2.65 billion acquisition of Neiman Marcus in 2024. He was succeeded as CEO by executive chairman Richard Baker, who quit both roles earlier this week and was replaced as chief executive by Geoffroy van Raemdonck.
The revolving door at the top underscores the pressure facing the New York-based private company that owns both Saks Fifth Avenue and Neiman Marcus. Jordan M. Lewis reported that the rapid succession of leaders reflects the urgency to stabilize operations while under creditor oversight.
Financing Lifeline
Saks Global lined up about $1.75 billion in financing commitments to keep shelves stocked and staff paid. The breakdown includes:
- $1.5 billion from existing creditors
- $240 million in incremental liquidity from lenders
The company emphasized that day-to-day operations will continue without disruption. Saks said it did not expect its operations to be disrupted and it would continue to honor its customer programs and pay its suppliers and employees.
Market Headwinds
The bankruptcy filing arrives as luxury spending cools worldwide. 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.
Shoppers have also pushed back against steep price hikes, forcing the retailer to rethink its value proposition. The company is also facing increasing competition as it tries to winnow down its heavy debt load, while its customers have balked against extravagant price hikes.
Strategic Pivot
Saks Global signaled it will shrink its physical footprint to focus on profitable locations. The company said it was “evaluating its operational footprint to invest resources where it has the greatest long-term potential.”
The restructuring follows a major corporate reorganization that began in 2021 when Hudson’s Bay Co., the Canadian owner of Saks Fifth Avenue, split off the luxury retailer’s e-commerce business, Saks.com. After acquiring Neiman Marcus three years later, Saks Fifth Avenue changed its name to Saks Global.
Broader Retail Fallout
Hudson’s Bay, Canada’s oldest company, moved to begin liquidating all but six of its stores in March 2025. The parent company’s downsizing mirrors the challenges facing department-store chains across North America as shoppers migrate online and curb discretionary purchases.
According to News Of Philadelphia, the bankruptcy marks one of the largest retail restructurings since the pandemic era, with potential ripple effects across luxury malls that rely on high-spending foot traffic.
Key Takeaways
- Saks Global’s Chapter 11 filing affects two iconic luxury brands under one roof
- $1.75 billion in committed financing aims to prevent liquidation
- Leadership instability adds complexity to turnaround efforts
- Luxury market contraction adds pressure to revive sales growth
- Store closures likely as the company refocuses resources
The case proceeds in the Southern District of Texas bankruptcy court, where creditors will negotiate repayment terms and the scope of store closures. Shoppers holding gift cards or loyalty points should monitor updates, though the company insists programs will remain intact during restructuring.
