Luxury retail giant Saks Global sought bankruptcy protection recently, marking one of the most significant retail collapses during the pandemic. This move follows a previous merger that united Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus. Despite the uncertainty surrounding the future of the renowned U.S. luxury brand, Saks announced that its stores will continue operations following the approval of a $1.75 billion financing package and the appointment of a new CEO.
Saks, a favorite among affluent clientele, faced ongoing challenges due to the impact of the COVID-19 pandemic, increasing competition from online retailers, and brands focusing on direct sales. The company’s financial struggles, including difficulties in paying vendors, led to inventory withholding.
Geoffroy van Raemdonck, former CEO of Neiman Marcus, will take over from Richard Baker, who initiated the debt-laden acquisition strategy at Saks Global. The company’s assets and liabilities are estimated to fall within the $1 billion to $10 billion range.
The bankruptcy filing aims to provide Saks with an opportunity to restructure debts or seek new ownership. Failure to do so could result in closure. The company emphasized that the demand for luxury goods remains strong, attributing its challenges to inventory availability and vendor confidence.
The acquisition of Neiman Marcus added to Saks Global’s debt amid a slowdown in global luxury sales. The company raised $600 million and restructured debt in 2025 to address financial difficulties. Issues such as missed vendor payments and inventory disruptions led to severe liquidity constraints heading into 2026.
To address financial constraints, Saks Global recently sold the real estate of the Neiman Marcus Beverly Hills flagship store and explored selling a minority stake in Bergdorf Goodman. A new financing deal, including a debtor-in-possession loan and asset-backed loans, aims to inject immediate cash and support the company’s emergence from bankruptcy protection.
Notable luxury brands, including Chanel and Kering, are among the unsecured creditors listed in the court filing. The evolving landscape of the luxury industry may see brands reducing reliance on department stores and prioritizing other distribution channels.
Richard Baker’s strategic moves, including the Neiman Marcus takeover and the consolidation of luxury assets under Saks Global, have reshaped the American high fashion landscape, uniting three iconic names in the industry.