Saks Global Files for Bankruptcy Protection, Casting Uncertainty on Iconic Retail Chain’s Future
Overview of Bankruptcy Filing
Saks Global, the parent company of high-end retailers Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, filed for bankruptcy protection in U.S. Bankruptcy Court in Houston late Tuesday. This development raises significant concerns regarding the future of the century-old department store chain.
Financial Struggles
The filing follows a series of financial challenges, including missed debt payments related to Hudson’s Bay Company’s 2024 acquisition of Neiman Marcus for $2.65 billion. Reports indicate that Hudson’s Bay had secured $2 billion in debt to finance the purchase, with an additional $1.5 billion from Apollo Global Management affiliates. Moreover, Amazon’s minority investment in Saks aimed to support this transaction.
Saks has also failed to make a significant interest payment exceeding $100 million to its bondholders, leading to difficulties in payment to vendors. Some suppliers have responded by withholding shipments, which has resulted in reduced inventory levels across Saks stores.
Corporate Restructuring and Leadership Changes
In light of the bankruptcy, Saks announced a $1.75 billion financing package to ensure that its stores remain operational throughout the bankruptcy process. Additionally, the company has appointed Geoffroy van Raemdonck, the former CEO of Neiman Marcus, as its new CEO, effective immediately. He takes over from Richard Baker, who stepped down from his position as executive chairman and CEO on January 13. Previously, Baker had been named CEO on January 2 following the departure of Marc Metrick.
Industry Context and Challenges
Saks’ struggles are indicative of broader challenges facing brick-and-mortar retailers as they contend with intense competition from e-commerce platforms and fast-fashion brands like H&M and Uniqlo. The retail landscape has seen a significant decline, with over 8,100 stores closing across the U.S. in 2025, an increase of approximately 12% from the previous year, according to Coresight Research.
Established in 1924 with its first store in Manhattan, Saks enjoyed rapid expansion between the 1970s and 1990s before its acquisition by Hudson’s Bay in 2013. Current offerings include luxury retailer Bergdorf Goodman, Saks Off 5th, and home furnishings brand Horchow.
As Saks Global navigates through this tumultuous period, the outcomes of this restructuring effort and ongoing financial challenges will be critical in determining the company’s future in the evolving retail market.