Saks Global has filed for Chapter 11 bankruptcy, Business Insider reports.
The luxury retailer that owns Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue, and Saks OFF 5TH owes millions to several companies, including Chanel ($136 million), Gucci’s parent Kering ($59 million), and Michael Kors’ parent Capri Holdings ($33 million), per the outlet.
ABC News cited several factors that have contributed to the filing: an increase in online shopping, direct-to-consumer sales outside department stores, and a decrease in interest in high luxury price points.
“Over the last five years, luxury prices have gone so high that there’s really a question of perceived value,” Marie Driscoll, a professor at The New School who studies luxury retail, told ABC News. “People are thinking, ‘This is not worth it.’”
Additionally, Saks Global’s 2024 acquisition of Neiman Marcus created financial strain for the company, notes Business Insider.
In a press release at the time, Richard Baker, executive chairman of Saks Global, described the purchase as a “transformative moment for Saks Global and the luxury retail industry.”
“By uniting Neiman Marcus, Bergdorf Goodman, and Saks Fifth Avenue, we have created an unparalleled multi-brand luxury portfolio with tremendous growth potential. With data and innovation at our core and a portfolio of prime real estate, we aim to redefine the luxury shopping experience,” Baker expressed.
Business Insider reports that the acquisition left the company with significant interest payments and unable to pay some vendors. In February 2025, Marc Metrick, Saks Global’s CEO at the time, said payments for overdue invoices would begin in July, with installments spread over 12 months.
“They must do something very quickly to rectify this situation in the market, or they will not have a spring season,” Gary Wassner, the CEO of Hilldun Corp., told Business Insider in December 2025.
Saks Global has between 10,001 and 25,000 creditors and between $1 billion and $10 billion in both assets and liabilities, per Business Insider.
How It Will Impact Shoppers
As for how it will affect shoppers, ABC News reports stores will remain open. However, some locations may close as part of restructuring efforts.
As AFROTECH™ previously reported, Metrick stepped down as CEO of Saks Global on Jan. 2, 2026, with Baker assuming the role. However, since the announcement, more shifts have been made with Baker being replaced by former Neiman Marcus CEO Geoffroy van Raemdonck as the company’s CEO, per Business Insider.
