Saks Global Succumbs to Bankruptcy a Year Following Neiman Marcus Purchase

Saks, bankrupt. The U.S. luxury department store company officially entered bankruptcy on Tuesday, in what was one of the largest retail bankruptcies in the United States. The bankruptcy comes just one year after the group completed its $2.7 billion purchase of operator Neiman Marcus.

The court proceedings are intended to give Saks more leeway to negotiate a debt restructuring with its creditors, or sell itself to a new owner to avoid liquidation, according to Reuters.

Saks stores will remain open for the time being, after receiving a financing package of $1.75 billion by appointing a new CEO. The new CEO is former Neiman Marcus CEO Geoffroy van Raemdonck, who will replace Richard Baker. The loan is led by Naples, Florida-based Pentwater Capital Management and Boston-based Bracebridge Capital.

Saks has received a $1.75 billion financing package as it appoints a new CEO

Unsecured creditors include Chanel and Kering, with approximately $136 million and $60 million, respectively. LVMH is also listed as an unsecured creditor for approximately $26 million. On December 30th, Saks also missed an interest payment of more than $100 million due at the end of the year.

Following Baker’s recent departure, the company has also appointed former Neiman Marcus executives Darcy Penick and Lana Todorovich as chief commercial officer and director of global brand alliances for Saks Global, respectively.

This comes a year after the deal to buy Neiman Marcus, with the idea of creating a luxury department store giant. However, it left Saks with debt that further complicated its restructuring. Last year, Saks was already having trouble paying its suppliers, who began withholding inventory, disrupting the company’s supply chain and leaving it with insufficient inventory.

Saks’ emptier storefronts have been able to drive shoppers away to its competitors, such as Bloomingdale’s, which posted a positive performance in 2025. In this context, Saks Global last month sold the property housing the Neiman Marcus flagship store in Beverly Hills, and also reportedly sought to sell a minority stake in Bergdorf Goodman department store to reduce debt.

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

The original Saks, the longest-running store, was opened in 1867 by Andrew Saks and earned worldwide fame by showcasing exclusive brands such as Chanel, Cucinelli and Burberry.