Saks Global Enterprises — the parent company of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman — is preparing to file for Chapter 11 bankruptcy protection as early as Sunday, according to a new report.
Sources familiar with the situation told Bloomberg that the struggling luxury retail giant is heading toward bankruptcy without a finalized restructuring plan, though company leadership hopes to put one together in the coming weeks. The timing and details of a potential filing remain fluid and could still change.
If confirmed, the move would mark a dramatic downturn for the roughly 150-year-old luxury retailer, which operates some of the most recognizable department stores in the world, including the iconic Saks Fifth Avenue flagship.
A Costly Expansion Meets a Tough Economy
Saks Global’s financial troubles intensified after it launched an ambitious turnaround strategy in 2024, highlighted by its acquisition of Neiman Marcus. The company reportedly borrowed $2.7 billion to complete the deal, creating what was then billed as the world’s largest luxury retail group.
But the timing proved difficult. Luxury spending has slowed sharply as consumers cut back on non-essential purchases amid persistent inflation, economic uncertainty, and tariff pressures. As sales weakened, Saks’ debt burden became increasingly difficult to manage.
According to reports, the company is now racing to secure more than $1 billion in emergency financing from new and existing investors. The funding would come in the form of debtor-in-possession financing, allowing Saks to continue operating during bankruptcy proceedings and pay overdue vendors.
The retailer also missed a $100 million interest payment on December 30 tied to the Neiman Marcus acquisition — a key factor that reportedly made a bankruptcy filing unavoidable.
Leadership Changes and Investor Frustration
Investor patience has reportedly worn thin in recent weeks as negotiations dragged on. Last week, Saks Global announced that longtime CEO Marc Metrick stepped down after more than a decade with the company.
Executive Chairman Richard Baker has resumed the CEO role. Baker, a real estate magnate, previously led the company before the Neiman Marcus acquisition.
Store Closures, Asset Sales, and Layoffs
Since the deal closed, Saks Global has struggled to stabilize revenue. In the most recently reported quarter ending August 2, company sales dropped 13% year over year.
To raise cash, Saks has taken several steps:
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Raised $600 million from bondholders last summer
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Explored selling a minority stake in Bergdorf Goodman
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Closed underperforming stores, including a Saks Fifth Avenue location in San Francisco in May 2025
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Sold the land beneath its Beverly Hills Neiman Marcus store to Ashkenazy Acquisition Corp., which now leases the property back under a long-term agreement
The company has also carried out multiple rounds of layoffs throughout 2025, cutting approximately 790 jobs across its operations.
What This Means for Shoppers
Saks Global currently operates more than 70 department stores nationwide. While a Chapter 11 filing would allow the company to continue operating during restructuring, it underscores the ongoing challenges facing traditional luxury retailers — even iconic brands — as shopping habits continue to shift.
For now, stores remain open, but the future of one of luxury retail’s most storied names is increasingly uncertain.