New York, Jan 14, 2026, 02:14 EST
- Saks Global filed for Chapter 11 in Texas late Tuesday; stores and websites remain open, the company said.
- The retailer lined up about $1.75 billion in financing, including a $1 billion debtor-in-possession loan.
- Former Neiman Marcus chief Geoffroy van Raemdonck was named CEO after Richard Baker stepped down.
Saks Global filed for Chapter 11 bankruptcy protection in Texas late on Tuesday, seeking to keep its Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus businesses running while it restructures under court supervision. The company said it had secured a $1.75 billion financing package to support operations through the process. Reuters
The filing lands as luxury demand has cooled and financing costs have stayed high, leaving debt-heavy retailers with little room for mistakes. A drawn-out case risks jolting the supply chain for designers and beauty brands that still lean on department stores to move volume.
It matters beyond Saks’ walls because big fashion houses are now among the creditors, according to the bankruptcy paperwork. The case is another stress test for the old model of multi-brand luxury retail, squeezed by brands selling more through their own boutiques and websites.
Saks Fifth Avenue, the retail arm of Saks Global, listed between $1 billion and $10 billion in assets and liabilities in court documents filed in U.S. Bankruptcy Court in Houston. The filing estimated between 10,001 and 25,000 creditors, including Chanel owed about $136 million and Gucci owner Kering owed about $60 million; LVMH was listed at $26 million.
The company said the new money includes a $1 billion debtor-in-possession loan — a Chapter 11 facility that typically gets paid before older debt — plus about $240 million of added liquidity from asset-based lenders. Saks also said it has a $500 million exit facility lined up for when it leaves Chapter 11, which it expects later this year.
Richard Baker stepped down as executive chairman and CEO on Jan. 13 after a brief stint in the top job earlier this month, and van Raemdonck took over immediately, the company said. “This is a defining moment for Saks Global, and the path ahead presents a meaningful opportunity to strengthen the foundation of our business,” van Raemdonck said. Saksglobal
Saks Global was built after Hudson’s Bay Co, which bought Saks in 2013, acquired rival Neiman Marcus in 2024 in a roughly $2.7 billion deal. The combination was pitched as a way to gain scale against peers such as Bloomingdale’s and Nordstrom, and against luxury brands pushing direct-to-consumer sales.
Saks missed a $100 million interest payment due Dec. 30, and vendors began tightening terms as the company fell behind on bills, according to reports and court records. Some of its bonds had traded at distressed levels, including as low as a penny on the dollar, with first-lien bonds — backed by the strongest collateral — around 25 to 30 cents, a bond investor told Reuters. Reuters
Tim Hynes, Debtwire’s global head of credit research, called Saks “a slow-melting ice cube.” “Some of their competitors have more freshness,” said Shawn Grain Carter, a professor at the Fashion Institute of Technology; Consumer Edge data cited in recent reporting showed high-end department-store transactions fell 10% from Black Friday through Cyber Monday versus a year earlier. Washingtonpost
But Chapter 11 is only breathing space. If the court balks at financing terms, or if luxury brands keep inventory tight and demand stays soft, the restructuring could tilt toward store closures, asset sales or liquidation.
Saks said it will seek early court approval to keep paying employees, continue customer programs and make ongoing payments to vendors while it negotiates a broader plan. Stores and e-commerce operations across Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, along with off-price banners Saks OFF 5TH and Last Call and home-furnishings unit Horchow, remain open, it said.
