Saks Global Files for Bankruptcy
Saks Global, the parent company behind Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus, and Bergdorf Goodman, filed for Chapter 11 bankruptcy protection on Wednesday after naming a new CEO, multiple news outlets reported. Former Neiman Marcus CEO Geoffroy van Raemdonck will lead the luxury department store group through the bankruptcy, helping navigate its heavy debt load that it acquired when it bought Neiman Marcus in late 2024.
Saks Global said it secured $1.75 billion in financing from a group of investors led by Bracebridge Capital and Pentwater Capital, which will allow it to keep stores open. The company said in a press release it was "evaluating its operational footprint to invest resources where it has the greatest long-term potential."
Total Retail's Take: The bankruptcy announcement, though not unexpected given the turmoil at the luxury retailer over the last few months, reflects a broader truth facing department stores and multibrand retailers, especially luxury ones: this type of demand has shifted, with luxury shoppers spending differently, e-commerce taking up the lion's share of attention and spend, and consumers being more cautious about their spending.
Saks has been facing problems for several years, with the BBC reporting that Saks Fifth Avenue began reporting double-digit quarterly sales declines in early 2023. Saks acquired Nieman Marcus in 2024 for $2.7 billion, The company failed to make a $100 million interest payment to creditors in late December, and announced that CEO Marc Metrick was stepping down shortly after the missed deadline. Brands also complained about delayed payments, with vendor invoices going unpaid, resulting in brands holding back on new shipments.
