Luxury Retail Giant Behind Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman Files for Bankruptcy

Saks Global, the parent company of luxury retailer Saks Fifth Avenue, has filed for Chapter 11 bankruptcy protection after struggling under a heavy debt load and running out of cash following its 2024 acquisition of rival Neiman Marcus.

The company filed late Tuesday in U.S. Bankruptcy Court for the Southern District of Texas, marking the first major U.S. retail bankruptcy of 2026.

Former Neiman Marcus chief executive Geoffroy van Raemdonck will immediately take over as CEO, Saks Global said Wednesday. He’ll replace Richard Baker, who had stepped in after Marc Metrick departed in early January. Baker held the role for just two weeks.

“With support from its key financial stakeholders, Saks Global has commenced voluntary chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas to facilitate its ongoing transformation,” the company said in a statement.

“This 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,” van Raemdonck said. “In close partnership with these newly appointed leaders and our colleagues across the organization, we will navigate this process together with a continued focus on serving our customers and luxury brands.”

Saks also announced it had secured roughly $1.75 billion in financing, including $1 billion in debtor-in-possession funding to keep the business operating during bankruptcy and an additional $500 million in financing upon its emergence.

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The filing follows months of financial strain. Saks Global — which operates nearly 200 stores across Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman and off-price locations — had missed an interest payment to bondholders late last month, fueling concerns that bankruptcy was imminent, according to multiple outlets, including CNN, CNBC and the BBC.

Saks Global company was created in 2024 when Saks’ owner Hudson’s Bay Co. acquired Neiman Marcus in a roughly $2.7 billion deal heavily financed with debt, CNN reported.

The merger was designed to form a luxury retail powerhouse with stronger negotiating power over brands and improved cost efficiencies, CNBC noted. Instead, Saks struggled to execute a turnaround, faced mounting debt and reportedly fell behind on vendor payments, straining relationships with luxury labels and shrinking assortments.

Shifting consumer behavior has also weighed on the business, per the BBC. Many shoppers have grown frustrated with rising luxury prices and perceived declines in quality, while others increasingly buy directly from brands rather than through department stores. A sluggish economy and soft consumer sentiment have further pressured high-end retailers.

It is not yet clear what the filing will mean for shoppers at Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman and the company’s other stores. No store closures were announced as part of the bankruptcy filing, and the retailer said it plans to continue operating while it works through the restructuring process.

Through Chapter 11, the business will seek to reorganize its debts and explore strategic options that could include new investment, asset sales or a potential buyer, according to court filings. The restructuring will also involve a review of its operational footprint, with the company saying it plans to focus resources on areas with the strongest long-term growth potential.

Court approval is being sought for a series of “first day” motions that would allow operations to continue as usual, including honoring customer programs, making go-forward payments to vendors and maintaining employee payroll and benefits.

Saks Global said it expects to emerge from bankruptcy later this year, supported by $1 billion in debtor-in-possession financing and an additional $500 million in funding committed upon its exit from Chapter 11.