Saks files for Chapter 11

March 2026 | DEALFRONT | BANKRUPTCY & CORPORATE RESTRUCTURING

Financier Worldwide Magazine

March 2026 Issue

Following months of speculation, Saks Global filed for Chapter 11 bankruptcy protection in mid January 2026. The filing, made in the US Bankruptcy Court for the Southern District of Texas, forms part of an effort to stabilise the business and create a more durable financial structure. Court documents showed that the company had between 10,001 and 25,000 creditors and held between $1bn and $10bn in both assets and liabilities.

The company’s difficulties intensified after its $2.7bn acquisition of Neiman Marcus in December 2024. Although the purchase was presented as a strategic move to combine major luxury brands and enhance scale, it increased Saks Global’s debt burden during a period of weakening luxury sales. Despite the deal’s ambition, the resulting interest repayments added strain. By early 2025, Saks informed vendors that overdue invoices would not be paid until July and would be settled over the following year, heightening pressure across the supply chain and contributing to lower stock levels.

By mid 2025, parts of the debt structure were renegotiated after the company fell short on an interest payment, and further distress followed when a $100m payment to bondholders, due on 30 December 2025, was also missed. Amid this uncertainty, Marc Metrick, chief executive, stepped down in early January after nearly 30 years with the company. He was briefly replaced by Richard Baker, who then handed leadership to Geoffroy van Raemdonck, the former Neiman Marcus chief executive who had guided that business through its 2020 restructuring.

Saks Global employs about 17,000 people and raised $600m in 2025 while restructuring parts of its debt. Yet the company continued to face liquidity shortages caused by missed vendor payments and inventory disruption. To preserve cash, Saks Global altered commercial arrangements to retain a larger share of sales proceeds. Several vendors responded by reducing shipments, worsening stock availability and limiting the company’s ability to trade effectively. Saks has also faced lawsuits from vendors alleging unpaid invoices for delivered merchandise.

In January 2026, following the bankruptcy filing, the company announced a financing package totalling approximately $1.75bn. This includes commitments from senior secured bondholders and additional liquidity from asset-based lenders. The funding is intended to support operations during restructuring and allow the company to maintain customer programmes. The company stated that its full line luxury stores would remain open throughout the process.

However, the same cannot be said for Saks Global’s off price portfolio. In late January and early February 2026, the company confirmed that it would close most Saks OFF 5TH stores, retaining only around 12 locations across six US states. The remaining outlets will serve mainly as channels to sell residual inventory from Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman. The company will no longer purchase merchandise specifically for the off price banner. All five remaining Last Call stores are also set to close. The website saksoff5th.com, a separate legal entity, has commenced a wind down, with online closing sales under way.

Leadership has emphasised that these decisions are central to reshaping the company’s operational footprint. Mr van Raemdonck described the restructuring as an important step in ensuring that Saks Global focuses its resources on areas with the strongest long-term potential. He reiterated that the company aims to build a more resilient model while maintaining its commitment to customers and brand partners.

Saks Global remains the world’s largest multi-brand luxury retailer, encompassing Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call and Horchow. Its portfolio includes 70 full line luxury stores, various off price locations now being wound down and several dedicated e-commerce platforms.

Richard Summerfield