The first major retail bankruptcy of 2026 has arrived.
Today, Saks Global Enterprises, owner of Saks Fifth Avenue and other luxury retail brands, has filed to seek Chapter 11 bankruptcy protection. The news shows that not even companies aimed at high-end consumers are immune to economic downturns. Here’s what you need to know.
What’s happened?
On Wednesday, January 14, Saks Global announced that it is seeking Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas.
At the same time, the luxury retail brand announced that it has also secured $1.75 billion in financing commitments. Much of this money will be used by Saks Global to finance its turnaround efforts through the bankruptcy process.
In addition to announcing Chapter 11 bankruptcy, Saks Global also announced the appointment of a new chief executive, Geoffroy van Raemdonck, who will take over the role immediately from the company’s outgoing CEO, Richard Baker.
Why is Saks Global filing for bankruptcy?
The company’s brands are dealing with the same problems that many other retailers are facing—higher tariffs, inflation, online competition, and consumers who are cutting back on discretionary spending.
A key problem for Saks Global over the past year has been an inability to pay its debts.
As noted by Reuters, Saks Global’s bankruptcy filings show the company has assets and liabilities of between $1 billion and $10 billion.
Its debt burden increased after Saks’ previous parent company, Hudson’s Bay Company, acquired competitor Neiman Marcus for around $2.7 billion in 2024.
That acquisition led to the formation of a new holding company, Saks Global, which is now filing for bankruptcy.
Bankruptcy filings show that Saks Global owes significant sums of money to some of fashion’s largest brands, including around $136 million to Chanel, $60 million to Gucci owner Kering, and $26 million to luxury goods giant LVMH.
Saks Global’s most well-known brand is the iconic luxury department store chain Saks Fifth Avenue, which was originally founded in 1867. However, the company also owns a number of other retailers, including Bergdorf Goodman, Saks Off 5TH, Last Call, Horchow, and, as of 2024, Neiman Marcus.
What has Saks said about the bankruptcy filing?
In a statement, CEO Geoffroy van Raemdonck said that the bankruptcy process “is a defining moment for Saks Global, and the path ahead presents a meaningful opportunity to strengthen the foundation of our business and position it for the future.”
Are Saks and Neiman Marcus stores still open?
Right now, Saks says that all of the company’s stores—including Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks off 5TH, Last Call, and Horchow—will remain open.
“Stores and ecommerce experiences across Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call and Horchow are open and serving customers,” the company noted.
Could Saks close stores?
That’s entirely possible. Saks Global noted that it was “evaluating its operational footprint to invest resources where it has the greatest long-term potential.”
“Operational footprint” is a term retailers use to refer to their physical stores. It isn’t uncommon for companies that are reorganizing themselves through Chapter 11 bankruptcy to close underperforming stores, so they have more financial resources to allocate to the more profitable ones.
Will Saks go out of business?
Right now, there is nothing to suggest that Saks Global or Saks Fifth Avenue will go out of business. The Chapter 11 bankruptcy process is being conducted so they comany can get its financial house in order and continue running.
However, what Saks Global may look like after it emerges from Chapter 11 remains unclear. As noted by CNBC, it’s possible the company could choose to close numerous stores, or even sell off entire plans—say, choosing to get rid of Neiman Marcus, whose acquisition left it with so much debt.
Another possibility would be for the retailer to close all its physical locations and continue sales online only.
But nothing will be known for sure until Saks Global completes the Chapter 11 process. The process is expected to conclude later this year.
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