Saks Global Files for Bankruptcy

A symbol of high-end retail in the United States, Saks was unable to overcome growing financial difficulties that intensified after the acquisition of Neiman Marcus in 2024 for approximately $2.7 billion. This transaction, which was supposed to create a consolidated leader in the luxury sector, mainly weighed on the group's balance sheet. The debt incurred quickly became unsustainable in the face of weakened and more cautious consumer demand.

The company estimates the number of its creditors to be between 10,001 and 25,000, reports ZoneBourse. Among the main ones are Chanel with $136 million, Kering, owner of Gucci, with $60 million, and LVMH with $26 million, according to court documents. Other major fashion houses such as Richemont, Zegna, Brunello Cucinelli, and Burberry are also on the list. The filing reveals that its thirty largest creditors, holding unsecured claims, are collectively owed approximately $712 million.

The New York-based group has approximately 70 stores in North America. In August 2025, it carried out a partial restructuring of its debt and raised $600 million. Despite this operation, the recovery did not take hold.

Saks Global's situation took a turn for the worse in December 2025, when the group failed to pay more than $100 million in interest. Since then, tensions have grown between management, suppliers, and creditors, with payment delays weakening the group's business relationships.

Chapter 11 allows a company to continue operating while reorganizing its debts (renegotiating rents, loans, contracts, etc.), with the support of approximately $1.75 billion in financing to maintain operations, pay salaries, and reassure business partners.

However, these measures cannot hide a deeper reality: a historic department store model that is struggling to reconcile its high fixed costs (prestigious locations, luxury brand suppliers, specialized staff) with a less favorable macroeconomic environment. The growth of online shopping, declining traffic in shopping malls, and a more cautious high-end customer base have been affecting this segment for some time.

The bankruptcy of Saks is a major shock to the department store world. The American group will now have to successfully restructure both its operations and its finances in order to adapt to a profoundly changed business model. Strengthening its digital presence appears to be a key lever, as demonstrated by Bloomingdale's, which began this transition several years ago and now enjoys a more solid financial position thanks to greater diversification of its sales channels.