"Saks Global has secured roughly $1.75 billion in financing, the New York company said as filed for Chapter 11 bankruptcy Wednesday in the Southern District of Texas. The private company said that stores will remain open as it restructures company debt, meaning that it will honor the programs it has for customers. Suppliers and employees will be paid, Saks said."
"When Saks said that it would buy Neiman Marcus for $2.65 billion in the summer of 2024, the goal was to create a powerhouse in a luxury sector that had grown more fragmented. Online sellers were siphoning customers and big name brands had begun to sell goods from their own stores. But the tie-up with Nieman Marcus only worsened Saks' debt situation as luxury sales weakened."
"Global sales of luxury goods are expected to contract for the second straight year in 2026 as consumers anxious about the global economy pare back their spending, according to a study by Bain & Co. consultancy released in November. Hudson's Bay, Canada's oldest company, began liquidating all but six of its stores in March 2025. The upscale department store landscape has volatile in recent years. Neiman Marcus entered bankruptcy protection for about four months in 2020 as the coronavirus pandemic spread."
Saks Global filed for Chapter 11 bankruptcy in the Southern District of Texas and secured roughly $1.75 billion in financing. Stores will remain open during the restructuring and customer programs will be honored; suppliers and employees will be paid. Geoffroy van Raemdonck became CEO this week after Richard Baker had assumed control when Marc Metrick stepped down. The company took on massive debt after acquiring Neiman Marcus for $2.65 billion in summer 2024, which worsened its leverage as luxury sales weakened. Global luxury sales are forecast to contract again in 2026, and the upscale department store sector has been volatile.
Read at Boston.com
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