Saks Global, the parent company of Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus, filed for bankruptcy, leaving the future of the largest luxury department store group in the United States in limbo.
The company has begun the Chapter 11 process in the U.S. Bankruptcy Court for the Southern District of Texas, it announced in a press release Wednesday.
The firm said it secured $1.75 billion in creditor financing to support its transition process, and named Geoffroy van Raemdonck — who led the Neiman Marcus Group prior to its 2024 acquisition by Saks — as its new CEO, effective immediately.
“This is a defining moment for Saks Global, and the path ahead presents a meaningful opportunity to strengthen the foundation of our business and position it for the future,” van Raemdonck said.
The news follows a wave of corporate bankruptcies including at Spirit Airlines and Party City. Filings hit a 15-year high in 2025 as firms grappled with inflation, increased costs and President Donald Trump’s trade wars. At the same time, retail sales rose by 0.6 percent in November, boosted by holiday spending.
Unnamed sources predicted the bankruptcy filing last month, pointing to unsustainable debts, The Independent previously reported.
The announcement means an uncertain future for the conglomerate’s numerous high-end retail locations including in New York City, Chicago and Los Angeles and other cities around the world.
Chapter 11 bankruptcy provides a pathway for businesses drowning in debt that cripples day-to-day operations but, unlike Chapter 7 bankruptcy, it does not entail liquidation.
In its release, Saks Global did not indicate that its stores — including Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call and Horchow — will face closures in the near future.
It said it is “seeking relief through a number of customary ‘first day’ motions with the Court to facilitate a smooth transition,” which include “requests to honor all customer programs, make go-forward payments to vendors, and continue employee payroll and benefits.”
The firm said that, with court approval, its creditor financing will “provide ample liquidity” to fund the company’s global operations. It added it “is evaluating its operational footprint to invest resources where it has the greatest long-term potential.”
Still, store closures may be around the bend. Retailers oftentimes use bankruptcy filings as a way to break expensive leases, according to The New York Times. The company may shutter multiple Saks and Neiman Marcus stores.
The filing could also spell the end of multiple small designers that offer their products in the firm’s department stores.
A company spokesperson did not immediately respond to a request for comment from The Independent.
The bankruptcy filing comes after Marc Metrik, the firm’s former CEO, resigned in January. Some observers have blamed him for being “highhanded” in dealing with vendors, according to the Times, while others suggested the expensive acquisition of Neiman Marcus may have been the problem.
Last month, the firm failed to pay a $100 million interest payment connected to its $2.65 billion purchase of Neiman, according to The Washington Post.
But, underpinning the bankruptcy is the fact that the American retail business has been upended by online, direct-to-consumer shopping, which reduced revenues.