Saks Global, a US luxury retail group, filed for bankruptcy protection late on Tuesday (January 13, 2026). The high-end department store conglomerate struggled with a substantial debt load due to multiple reasons, including the COVID pandemic and competition. The group’s move to file for bankruptcy protection is one of the largest retail collapses since the pandemic.
The decision comes barely a year after a deal that brought Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus under the same roof. According to AFP, the conglomerate said in a statement that it had initiated bankruptcy proceedings in the US Bankruptcy Court for the Southern District of Texas.
According to Reuters, Saks Global estimated in documents filed in the U.S. Bankruptcy Court in Houston, Texas, that its assets and liabilities were in a range of $1 billion to $10 billion.
Key reasons behind Saks Global’s bankruptcy
Saks, the popular retail group among the rich and famous, fell on hard times after the COVID pandemic, as competition from online outlets rose, and brands started selling more items through their own stores.
Despite the bankruptcy filing, the retailer said during the early hours on Wednesday (January 14, 2026) that its stores would remain open for now after it finalized a $1.75 billion financing package and appointed a new chief executive, according to Reuters.
Saks Global makes big leadership change
Former CEO of the Neiman Marcus department store chain Geoffroy van Raemdonck will replace Richard Baker, who was the architect of the acquisition strategy that saddled Saks Global with debt.
The company also appointed former Neiman Marcus executives Darcy Penick and Lana Todorovich as chief commercial officer and chief of global brand partnerships at Saks Global, respectively.
Saks Global has room for negotiation
The court process is meant to give the luxury retailer room to negotiate a debt restructuring with creditors or find a new owner. Failing that, the company may be forced to shutter, Reuters reported.
The original Saks Fifth Avenue store, known for carrying exclusive brands like Chanel, Cucinelli, and Burberry and its Christmas light shows, was opened by retail pioneer Andrew Saks in 1867.
Saks Global to receive immediate funds through new financing deal
The new financing deal would provide an immediate cash infusion of $1 billion through a debtor-in-possession loan from an investor group, Saks Global said. Reuters earlier reported the loan was led by Pentwater Capital Management in Naples, Florida, and Boston-based Bracebridge Capital.
How funds will be induced under the deal
Financing worth $240 million would be available through an asset-backed loan provided by the company’s asset-based lenders, according to the company.
The luxury retailer will have access to $500 million of financing from the investor group once it successfully exits bankruptcy protection, expected later this year, Saks Global said. It asked the court to delay the submission of the group’s financial statements by 45 days to March 13, 2026.
Luxury brands among Saks Global’s creditors
Saks Global, in the court filing, said that several luxury brands were among the unsecured creditors, led by Chanel, with about $136 million, and Gucci owner Kering with $60 million, Reuters reported.
The world’s biggest luxury conglomerate, LVMH, was listed as an unsecured creditor at $26 million. In total, Saks Global estimated there were between 10,001 and 25,000 creditors.
In 2024, Baker had masterminded the takeover of Neiman Marcus by Canada’s Hudson’s Bay Co., which had owned Saks since 2013, and later spun off the U.S. luxury assets to create Saks Global, bringing together three pioneers of American high fashion.
The $2.7 billion deal was built on about $2 billion in debt financing and equity contributions from investors, including Amazon, Salesforce, and Authentic Brands, which were listed in the court filing as equity investors in Saks Global.
How the Neiman Marcus deal disrupted Saks Global
The Neiman Marcus deal saddled Saks Global with debt at a time when global luxury sales were slowing, complicating an already difficult turnaround for CEO and veteran executive Marc Metrick.
Saks Global was seen struggling in 2025 to pay vendors, who began withholding inventory, disrupting the company’s supply chain and leaving it with insufficient stock. The thinly stocked shelves may have driven shoppers away to rivals like Bloomingdale’s, which posted strong sales in 2025, compounding pressure on Saks Global.
