Saks Global, the parent company of luxury retailer Saks Fifth Avenue, filed for bankruptcy protection late Tuesday. The company had been struggling with heavy debt after acquiring rival Neiman Marcus in 2024.
The company filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The store is the first major retailer to go bankrupt in 2026.
In early January, Mark Metric stepped down as CEO and handed over his position to Saks Global Executive Chairman Richard Baker. Less than two weeks later, Baker resigns as CEO.
Americans’ retail habits have changed in recent years, and some traditional retailers are struggling to keep up. Many shoppers are disillusioned with the luxury goods market and are frustrated by the high prices of low-quality items. And those who still buy luxury goods are increasingly buying directly from the brands themselves through direct-to-consumer strategies, cutting out intermediaries such as department stores.
The economic uncertainty of the past year hasn’t helped, with consumer confidence depressed and a slowing job market adding to fears. the majority of Americans A recent CNN poll shows people blaming the White House for hurting the economy.
“With the support of key financial stakeholders, Saks Global has voluntarily commenced Chapter 11 litigation in the United States Bankruptcy Court for the Southern District of Texas (the “Court”) to facilitate its ongoing transformation,” the company announced. statement.
As part of the filing, Richard Baker will step down as CEO of Saks Global, and former Neiman Marcus CEO Geoffroy van Raemdonk will take over the post through bankruptcy proceedings.
“This is a defining moment for Sachs Global, and the path forward offers meaningful opportunities to strengthen the foundations of our business and position us for the future,” van Raemdonck said in a Sachs statement.
“Working closely with these newly appointed leaders and our colleagues across the organization, we will move through this process together as we remain focused on serving our customers and luxury brands. I look forward to serving as CEO and continuing to transform the company so that Saks Global continues to play a central role in shaping the future of luxury retail.”
Saks Global was the product of a 2024 deal in which Saks owner HBC acquired Neiman Marcus for $2.65 billion. The goal was to take back some control from individual brands and establish a luxury behemoth that could lure shoppers back into stores while negotiating lower costs.
saxophone instead reportedly I had a hard time pay vendorstraining those relationships and fueling concerns about possible bankruptcy months before the retailer filed for protection.
Saks Global said in a statement Wednesday that it had secured $1 billion in debtor-in-possession financing, which it said would provide “sufficient liquidity to fund Saks Global’s business operations and restructuring plans.” The group of bondholders also agreed to provide an additional $500 million in financing in the event of bankruptcy.
This story has been updated with additional information.