Saks Global: From Luxury Ambition to Bankruptcy in Less Than a Year
In January 2026, Saks Global, the luxury retail conglomerate formed to rival the most elite brands in fashion retail, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas — marking one of the most significant U.S. retail collapses in recent years.
At its peak, Saks Global combined several of America’s most storied names — Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman — under one roof after a $2.65–$2.7 billion merger and acquisition strategy completed in late 2024.
But within just over a year, the luxury empire unraveled.
A Debt-Heavy Gamble
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| credit - Saks Global |
The centerpiece of Saks Global’s downfall wasn’t a sudden drop in style or relevance — it was debt.
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To fund the merger and expansion strategy, Saks Global took on several billion dollars in debt, including senior secured notes with high interest obligations.
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By late 2025, the company missed a key ~ $100 million interest payment tied to that debt, triggering alarms among lenders and setting the stage for bankruptcy preparations.
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Despite efforts to raise capital by selling assets like real estate and restructuring earlier in 2025, liquidity pressures continued to mount.
Investors and lenders — including high-profile backers like Amazon and Salesforce — had hoped that combining luxury house brands with broader retail reach would create sustainable growth. But the financing structure proved fragile in a period of softening luxury demand and persistent high interest rates.
In bankruptcy filings, Saks Global reported assets and liabilities each in the range of $1 billion to $10 billion, reflecting both its enduring brand value and overwhelming obligations.
Operational Struggles Amid Debt Pressures
Heavy borrowing didn’t just saddle the company with interest payments — it also strained supplier relationships:
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Major luxury brands such as Chanel and Kering became significant unsecured creditors, collectively owed hundreds of millions as vendor confidence eroded.
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Multiple reports noted that unpaid invoices led to slowed or paused shipments, hurting inventory levels and sales.
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Revenues declined as luxury consumers shifted spending to boutique brand stores and online platforms — trends that department store models have struggled with industry-wide.
Amid the turmoil, leadership churned. Long-standing CEO Marc Metrick stepped down in early 2026 after missing debt payments, and Richard Baker briefly took the helm before being replaced by Geoffroy van Raemdonck, the former CEO of Neiman Marcus, in an effort to stabilize operations.
Restructuring, Lawsuits & Uncertain Future
Even as Saks Global initiated bankruptcy proceedings, it secured a $1.75 billion financing package to keep stores open and pay employees and vendors during restructuring.
But not all creditors are on board. Amazon — which invested roughly $475 million into Saks Global — has challenged aspects of the restructuring plan in bankruptcy court, arguing that its equity stake has been “presumptively worthless.”
The broader story reflects more than just poor planning — it exposes the challenges of merging legacy retail formats with modern financial engineering in an unstable economic environment.
Lessons from the Saks Global Collapse
Even the most prestigious brands can falter if built on unsustainable debt and weak fundamentals.
Before betting on a company, scrutinize the balance sheet, understand debt servicing, and watch how crucial supplier relationships and sales trends are evolving.