Saks Global, the parent company of luxury retailer Saks Fifth Avenue, has filed for Chapter 11 bankruptcy protection due to overwhelming debt challenges. The troubles primarily stem from its 2024 acquisition of rival Neiman Marcus, which significantly burdened the company’s finances.
After spending $2.7 billion on Neiman Marcus, Saks Global faced increasing pressure that culminated in its inability to meet a $100 million interest payment in late 2025. This failure raised serious liquidity concerns, delayed vendor payments, and strained company operations.
To facilitate its restructuring, Saks Global secured around $1.75 billion in debtor-in-possession financing, including a notable $1 billion loan. This funding has enabled the company to keep its stores and e-commerce platforms operating while it navigates through bankruptcy proceedings.
In the wake of these developments, CEO Baker will step down, and Geoffroy van Raemdonck, the former chief of Neiman Marcus, will take over leadership during this critical period.
“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,” said van Raemdonck in a recent company statement.
He added, “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. I look forward to serving as CEO and continuing to transform the Company so that Saks Global continues to play a central role in shaping the future of luxury retail.”
The timing of the Neiman Marcus merger has raised questions as consumer preferences in the U.S. have shifted away from traditional department stores. This trend has affected even well-established brands, with Macy’s closing hundreds of locations in 2024 and Lord & Taylor shuttering its operations in 2020.
The bankruptcy filing highlights the wider issues confronting luxury and legacy retail markets, including heavy debt, competition from online and direct-to-consumer outlets, and changes in consumer spending behavior. While Saks Global may emerge from bankruptcy more streamlined and efficient, its long-term viability remains uncertain.
Saks Global Holdings LLC represents a U.S. luxury retail holding company that encompasses Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call, and Horchow. Formed through a series of mergers finalized in late 2024, the company consolidates various premium retail brands under one umbrella and operates from its New York City headquarters, holding significant retail real estate in prime markets.
Saks Fifth Avenue, as one of its flagship properties, is celebrated for its exclusive designer collections, iconic stores, and superior customer service.
The situation with Saks Global serves as a reminder of the obstacles faced by large multi-brand retailers in a rapidly changing luxury marketplace. It illustrates how swiftly evolving consumer preferences, competitive pressures, and substantial debt can align to create acute financial challenges. Companies in this industry must strategically adapt while ensuring operational continuity to keep their brands relevant and address legacy issues.
At a broader level, this case underscores the vulnerability of traditional retail models within a market that is increasingly shaped by online and direct-to-consumer alternatives. Even established brands with trustworthy reputations must continuously evolve and optimize their operations to maintain competitiveness.
