High-end department store conglomerate Saks Global filed for bankruptcy protection late Tuesday, marking one of the most significant retail collapses since the COVID-19 pandemic.
The development has cast fresh uncertainty over the future of the U.S. luxury fashion industry, coming just a year after a major consolidation that brought iconic brands Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus under a single corporate umbrella.
Despite the bankruptcy filing, the struggling luxury retailer is close to securing a $1.75 billion financing package from its creditors, which would allow its stores to continue operating. Two sources familiar with the negotiations told Reuters that the deal was nearing completion earlier on Tuesday.
Court filings revealed that the company’s largest unsecured creditors include fashion house Chanel, owed approximately $136 million, and Gucci owner Kering, with claims of around $60 million.
Once a favorite shopping destination for celebrities and high society figures—from Gary Cooper to Grace Kelly—Saks has faced mounting challenges in recent years. The post-pandemic retail landscape, rising competition from online platforms, and luxury brands increasingly selling directly through their own stores have all contributed to the company’s financial strain.
In 2024, parent company Hudson’s Bay pursued a scale-driven strategy by merging Saks with rival Neiman Marcus, forming Saks Global. The $2.7 billion deal was financed through roughly $2 billion in debt, along with equity investments from major backers including Amazon, Salesforce, and Authentic Brands.
