Saks Faces Potential Bankruptcy Despite Billions Raised for 2025 Comeback

Saks Global, on the verge of bankruptcy. The luxury department store chain could file for bankruptcy after failing to find a solution to reduce its debt, which amounts to more than $100 million and matures at the end of this month.

The U.S. company is considering other ways to shore up its liquidity, such as obtaining emergency financing or selling assets, company sources have told Bloomberg.

Some Saks lenders have reportedly held confidential discussions in recent days to assess the company’s cash needs, focusing on a possible debtor-in-possession loan.

Following the December 2024 acquisition of Neiman Marcus as part of a restructuring plan for Saks, where the purchase was expected to revitalize the struggling luxury retailer, the deal exacerbated the company’s debt and failed to resolve problems with suppliers.

Saks Global acquired Neiman Marcus in December 2024 for $2.7 billion

Saks has undertaken different processes to avoid bankruptcy in the last year. In May, the U.S. company announced the closing of a $350 million financing transaction from SRL Credit Solutions. In June, Saks Global reached an agreement with its creditors to refinance $600 million, which forced them to accept losses, and with which they were saved from bankruptcy.

In July, the company announced its results for the first quarter of the year with a net loss of $232 million, up from a net loss of $184 million in the first quarter of 2024, excluding Neiman Marcus.

In September, Saks Global began the search for a buyer to divest 49% of the capital of the New York chain Bergdorf Goodman, in a participation valued at $1 billion, according to The Wall Street Journal, which finally was not completed.

A year ago, Hudson’s Bay Company (HBC) took control of Neiman Marcus for $2.7 billion. The transaction resulted in the creation of a new company called Saks Global, which included Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and Saks Off 5th.