In Portsmouth, New Hampshire, Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, filed for Chapter 11 bankruptcy on January 13, 2026, after missing a $100 million interest payment in late December 2025. This bankruptcy has left the once-dominant luxury retail empire in turmoil, risking thousands of jobs, vendor relationships, and customer loyalty.
The Consequences of a Bold Merger
The financial struggles stem from Saks Global’s 2024 acquisition of Neiman Marcus for $2.7 billion. The merger, intended to create a luxury retail powerhouse, instead burdened the company with $2.2 billion in debt amid a downturn in consumer spending on high-end goods and rising operational costs. Sales had already dropped significantly in early 2023, further exacerbating cash flow problems as debt payments accumulated.
Seeking Operational Lifelines
To avoid an immediate shutdown, Saks Global secured $1.75 billion in debtor-in-possession financing, allowing the company to maintain operations, including store openings, online platforms, payroll, and loyalty programs, throughout the bankruptcy process. However, the situation worsened with leadership changes: CEO Marc Metrick resigned on January 2, 2026, and Executive Chairman Richard Baker stepped down on the day of the bankruptcy filing. Geoffroy van Raemdonck, former Neiman Marcus CEO, was appointed as the new CEO to guide the company through its restructuring.
Supply Chain Breakdowns
Vendor networks began to suffer almost immediately. In December 2025, Hilldun, a financial firm that supports over 140 brands’ purchase orders, suspended its approvals, which led to halted shipments and empty store shelves. Bankruptcy filings revealed that Saks Global owed $700 million to its top 30 unsecured creditors, including $136 million to Chanel. Smaller designers and manufacturers faced unpaid 2025 invoices, placing their businesses at risk, while global suppliers, from Italian leather artisans to Asian factories, were also impacted by payment delays and currency fluctuations.
Employees and Retail Uncertainty
With 16,830 employees across its U.S. locations, Saks Global’s workforce is now in limbo. Chapter 11 proceedings are being closely monitored by the courts, as the company negotiates debt, contracts, and assets. Vendors have filed claims for repayment as Saks evaluates its stores’ futures. Competing luxury brands and digital platforms are positioning themselves to capture the attention of displaced customers, signaling a shift from traditional department stores to direct sales and resale markets.
Wider Impact and Retail Industry Struggles
The fallout extends beyond Saks Global, affecting other sectors like logistics, packaging, and technology providers, all of which face potential contract cuts. Saks’ flagship store on Fifth Avenue in New York, a major tourist attraction, could hurt local businesses that are still recovering from the pandemic. Consumer confidence is declining, particularly among international buyers, who are wary of the stability of U.S.-based intermediaries.
Analysts argue that this situation highlights the ongoing challenges department stores face when competing with e-commerce and direct-to-consumer business models. Neiman Marcus, which had previously emerged from a 2020 bankruptcy, now finds itself again embroiled in financial difficulties. The restructuring process could take years, with store closures, brand departures, and ongoing sales expected. The company’s survival will depend on successful debt renegotiations, rebuilding vendor trust, and adapting to the changing retail landscape.
Sources:
“Saks Global files for bankruptcy protection.” CNBC, 14 Jan 2026.
“Saks C.E.O. Steps Down as Company Struggles to Pay Bills.” The New York Times, 2 Jan 2026.
“Chanel, Kering top luxury who’s who of Saks Global unsecured creditors.” Reuters, 14 Jan 2026.
“Saks owes hundreds of millions to luxury brands from Chanel to Burberry.” Business Insider, 13 Jan 2026.