Saks Global files for Chapter 11, putting stores and vendors at risk

Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, has filed for Chapter 11 bankruptcy protection, the company said. The filing begins a reorganization under new owners rather than a liquidation. Company insiders and analysts say the group’s large debt load, including debt taken on when it acquired Neiman Marcus in late 2024, and changes to supplier payment terms left stores with dwindling inventory.

The new owners are expected to close a number of Saks and Neiman Marcus locations and roughly half of Saks Off 5th stores; such closures generally do not begin until about 30 days after a filing. The bankruptcy has immediate consequences for smaller brands that rely on department-store wholesale.

Joseph Sarachek, a lawyer who has represented nearly 30 brands owed money by Saks, said some are owed between $50,000 and $10 million. In bankruptcy, secured creditors are paid before unsecured ones, and unsecured vendors often receive only "pennies on the dollar," an attorney for brands said.

By contrast, large luxury houses that operate concessions are less likely to be affected, and a Bernstein report cited an analyst who expects many luxury brands to push toward mostly direct-to-consumer sales. There are signs inventory and shipments could resume now that a bankruptcy loan is in place and vendors may be paid again.

Key Topics

Business, Saks Global, Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Department Stores