Saks Global Files for Bankruptcy Amid Financial Struggles

Luxury retailer Saks Global Enterprises, the parent company of Saks Fifth Avenue and Neiman Marcus, has filed for Chapter 11 bankruptcy protection. The filing follows financial challenges that intensified after the company's $2.65 billion acquisition of Neiman Marcus in 2024.

The acquisition added significant debt to the company's balance sheet, leading to operational and financial difficulties. In late December 2025, Saks Global missed an interest payment exceeding $100 million, triggering a 30-day grace period that expired without resolution.

In an effort to manage its debt, the company sold its 184,000-square-foot Neiman Marcus flagship store in Beverly Hills on December 23, 2025. Additionally, Saks Global announced the closure of nine underperforming Saks OFF 5TH locations, set to permanently close by January 2026.

The company's financial struggles have also affected its relationships with vendors. Some suppliers have halted shipments due to delayed payments, leading to inventory shortages and impacting sales.

Richard Baker, who led the Neiman Marcus acquisition, has assumed the role of CEO following the resignation of Marc Metrick in early January 2026.

Saks Global is currently in advanced discussions with creditors regarding a $1.25 billion debtor-in-possession financing package to maintain operations during the bankruptcy process and settle overdue payments to vendors.

The company aims to restructure its operations and finances to emerge from bankruptcy as a more stable entity in the luxury retail market.