On Wednesday, Saks Global officially filed for Chapter 11 bankruptcy, only a little over a year after acquiring Neiman Marcus Group in a $2.7 billion deal. In a press statement, the company said the filing is supported by its key financial stakeholders and that it has secured $1.75 billion in financing, comprised of $1.5 billion from an ad hoc group of senior secured bondholders and approximately $240 million in incremental liquidity from asset-based lenders. All stores across Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks Off 5th, Last Call and Horchow will remain open.Saks Global also announced changes to its leadership team: Richard Baker has stepped down from his role as executive chairman and CEO. His replacement is Geoffroy van Raemdonck, who previously served as CEO of Neiman Marcus Group prior to its acquisition by Saks. He’s brought on fellow Neiman Marcus alumni Darcy Penick as president, chief commercial officer; and Lana Todorovich as chief of global brand partnerships.”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. In close partnership with these newly appointed leaders and our colleagues across the organization, we will navigate this process together with a continued focus on serving our customers and luxury brands,” van Raemdonck said in a press statement.Industry experts predicted that a bankruptcy filing was in Saks’ near future: Immediately after acquiring Neiman Marcus, Saks also assumed its longtime rival’s debt and failed to pay it. (Saks was already struggling to pay its own vendors before the merger.) The deal was supposed to help set up the company for a turnaround, but with a luxury slowdown and shrinking sales, that strategy didn’t come into fruition as investors and Saks hoped.Instead, the retailer’s debts to vendors and suppliers (some of whom had unpaid invoices dating back to 2023) continued to mount, creating strained relationships with brands. In February 2025, Saks promised to pay off all outstanding payments, but it failed to deliver, prompting vendors to refuse additional shipments and creating inventory issues for consumers. The company tried to mitigate the declining cash flow through multiple layoffs, closing stores and shutting down fulfillment centers. In September, Saks put a 49% stake in Bergdorf Goodman up for sale, valued at $1 billion. (Bidders have expressed interest, but nothing has been finalized.) Still, as recently as Dec. 30, 2025, the retailer missed a $100 million interest payment. Under bankruptcy protection, the company has a chance to regain its footing and establish stability. It joins other luxury retailers undergoing bankruptcy proceedings, including Ssense and Luisaviaroma. Do you have an emerging brand you want to share with Fashionista readers? Jumpstart your business with our affordable digital offerings.
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