Saks Global filed for bankruptcy protection late Tuesday, according to court documents entered in U.S. Bankruptcy Court in Houston, throwing the future of the roughly century-old high-end department store chain into doubt. Saks Global is the parent company of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.

Saks also said it had secured a $1.75 billion financing package and that it would keep its stores open as the bankruptcy procedure plays out.

Saks recently missed a debt payment stemming from a 2024 deal by its parent company, Hudson's Bay Company, to buy rival luxury retailer Neiman Marcus for $2.65 billion, the Wall Street Journal reported in late December, citing people familiar with the matter.

Swamped by debt

Hudson's Bay raised $2 billion in debt to complete the Nieman Marcus deal, while Apollo Global Management affiliates provided an additional $1.5 billion in financing. Amazon also took a minority stake in Saks to facilitate the deal. 

"The debt-fueled acquisition of Neiman Marcus always made bankruptcy a likely destination for Saks Global," said Neil Saunders, managing director of market research firm GlobalData. "The only real surprise has been the speed of the collapse, which has come barely a year after the deal closed."

Saks also missed a more than $100 million interest payment to bondholders, according to the Journal, which said the retailer has fallen behind on payments to vendors. Some suppliers have responded by withholding shipments, leaving Saks with thinner merchandise offerings.

"The truth is that Saks Global put itself in a financially precarious position that undermined the day-to-day operations of the business. A lack of cash meant suppliers went unpaid, this created inventory gaps which then drove customers away and caused revenue and cash generation to plummet," Saunders added.

New York-based Saks launched in 1924, opening its first store in Manhattan, according to a historical account of the company posted on its website. The company expanded quickly between the 1970s and 1990s before it was purchased by Hudson's Bay in 2013. Saks's brands include luxury retailer Bergdorf Goodman, which was acquired as part of the deal for Neiman Marcus; retailer Saks Off 5th, and home furnishings seller Horchow.

8,100 store closures

Saks appointed former Neiman Marcus CEO Geoffroy van Raemdonck as its new CEO, effective immediately. He succeeds Richard Baker, who stepped down from his role as Saks executive chairman and CEO on Jan. 13. Saks had announced on Jan. 2 that Baker would succeed CEO Marc Metrick as chief executive.

"If there is one positive from the bankruptcy, it's that the previous management team has been cleared out," Saunders said. They bear responsibility for the mess, and their reputation with vendors and associates at the firm is thoroughly tarnished."

Brick-and-mortar retailers face ongoing competitive challenges from e-commerce and "fast-fashion" sellers such as H&M and Uniqlo. More than 8,100 stores closed across the U.S. in 2025, up roughly 12% from the previous year, according to retail industry analytics firm Coresight Research.