Luxury retail giant Saks Global has filed for bankruptcy protection, marking one of the largest U.S. retail collapses since the pandemic. The move comes barely a year after the company merged Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus under a single corporate umbrella.

Despite the filing, Saks Global confirmed that stores will remain open after securing a $1.75 billion financing package and appointing former Neiman Marcus CEO Geoffroy van Raemdonck as its new chief executive.

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Background and Financial Struggles

The bankruptcy documents filed in Houston, Texas, list assets and liabilities between $1 billion and $10 billion, with 10,001 to 25,000 creditors. Among the largest unsecured creditors are luxury brands such as:

• Chanel: $136 million
• Kering (owner of Gucci): $60 million
• LVMH: $26 million

Saks Global’s financial difficulties stem from a debt-heavy Neiman Marcus acquisition in 2024, which followed Hudson’s Bay Co’s ownership of Saks since 2013. The $2.7 billion deal was partly financed by $2 billion in debt and equity investments from companies including Amazon, Salesforce, and Authentic Brands.

The acquisition aimed to create a U.S. luxury powerhouse, but debt pressures coincided with a slowdown in global luxury sales, supply chain challenges, and rising competition from online retailers and rivals like Bloomingdale’s.

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Bankruptcy Financing Plan

Saks Global secured immediate liquidity through a $1 billion debtor-in-possession loan led by Pentwater Capital Management and Bracebridge Capital. An additional $240 million in asset-backed loans is available from the company’s lenders.

Upon successfully exiting bankruptcy protection, Saks Global will have access to $500 million in additional financing, expected later in 2026. The court has granted a 45-day extension for submitting the company’s financial statements.

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Leadership Changes

Former Neiman Marcus executives Darcy Penick and Lana Todorovich have been appointed Chief Commercial Officer and Chief of Global Brand Partnerships, respectively. The move follows the departure of Richard Baker, the architect of the Neiman Marcus acquisition strategy.

Van Raemdonck said:

“We are focused on keeping Saks Global stores open and creating a sustainable future for U.S. luxury retail.”

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Retail Impact

Saks Global had already sold the Neiman Marcus Beverly Hills flagship last month and considered selling a minority stake in Bergdorf Goodman to reduce debt. A missed $100 million interest payment on December 30 triggered further financial instability.

Analysts noted that while high-net-worth consumers continue to spend, they are shopping less at Saks, opting for competitors and online luxury channels.