The world of luxury retail has been rocked by the dramatic fall of Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman. On January 14, 2026, the company filed for Chapter 11 bankruptcy protection, sending shock waves through the fashion industry and leaving thousands of creditors, vendors, and employees facing an uncertain future. The move, while not entirely unexpected, marks a pivotal moment for American luxury retail and underscores the challenges facing traditional department stores in a rapidly evolving market.
Just over a year ago, Saks Global made headlines when it acquired Neiman Marcus Group for $2.7 billion—a bold move that many hoped would cement its dominance in the luxury sector. But the deal saddled the company with enormous debt, including $2.2 billion in bonds from the acquisition and an additional $600 million from a refinancing in August 2025. According to WWD, the company entered bankruptcy court with $1.75 billion in financing from a group of bondholders, which will keep operations afloat during the restructuring process. Yet, the initial court filings revealed a sobering reality: Saks Global’s assets and debts each fall somewhere between $1 billion and $10 billion, a range that will be refined as proceedings continue.
The bankruptcy filing is not a death knell—at least not yet. As The New York Times explained, Chapter 11 protection means Saks Global is reorganizing under new ownership, not liquidating its assets outright. This is not a repeat of the Barneys collapse, but it does mean that significant changes are on the horizon. Retailers often use bankruptcy to exit expensive leases, and industry observers expect the closure of several Saks and Neiman Marcus locations, as well as about half of the Saks Off Fifth stores. These closures are anticipated to begin approximately 30 days after the filing, potentially leaving some shoppers without their local luxury outpost.
For the fashion world, the ripple effects are profound. More than 10,000 creditors are now entangled in the bankruptcy process, including some of the biggest names in the industry. Chanel Ltd. tops the list, owed a staggering $136 million, followed by Kering at $59.9 million, Rosen-X at $41.4 million, Capri Holdings at $33.3 million, Mayhoola at $33.2 million, and Compagnie Financière Richemont at $30.8 million. Even Vince Holding Corp., the 30th largest unsecured creditor, is owed $9.1 million. As WWD noted, while larger brands often protect themselves through concession models—retaining ownership of their inventory—smaller designers are particularly vulnerable. Many have spent the past year chasing overdue payments from Saks Global and may never see much of their money, a devastating blow for those who rely on department store sales for survival.
The leadership shakeup at Saks Global has added to the turbulence. Richard Baker, the architect behind the company’s expansion and acquisition of Neiman Marcus, finalized his exit as CEO and executive chairman just before the bankruptcy filing, according to Bloomberg. Baker had long dreamed of creating a retail empire that would dominate the U.S. luxury market, but his strategy of aggressive dealmaking and real estate maneuvering ultimately succumbed to the harsh realities of retail economics. Marc Metrick, who served as CEO until earlier this month, was also criticized for his strained relationships with vendors, further complicating the company’s ability to stock merchandise and drive sales.
Stepping into the fray is Geoffroy van Raemdonck, the former CEO of Neiman Marcus Group, who now takes the helm as CEO of Saks Global. In a statement reported by WWD, van Raemdonck said, “This is a defining moment for Saks Global, and the path ahead presents a meaningful opportunity to strengthen the foundation of our business and position it for the future. In close partnership with these newly appointed leaders and our colleagues across the organization, we will navigate this process together with a continued focus 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.” Joining van Raemdonck are Darcy Penick as president and chief commercial officer, overseeing stores, marketing, buying, digital, analytics, and customer care, and Lana Todorovich as chief of global brand partnerships. Brandy Richardson, who previously worked alongside van Raemdonck at Neiman Marcus, continues as chief financial officer.
The company’s woes can be traced to a confluence of factors. The heavy debt from the Neiman Marcus acquisition was a major burden, but deteriorating relations with vendors, frequent management turnover, and a series of strategy reversals dating back to the 1990s also played a role. Saks Global’s recent strategy focused on “resetting” the luxury customer experience—intensifying personalization, inventory sharing between Saks and Neiman’s, leveraging enriched data, and embracing artificial intelligence. But as WWD observed, these efforts were not enough to overcome the mounting challenges. Vendors became increasingly reluctant to ship goods due to uncertainty over payments, and the much-anticipated flow of spring merchandise never materialized at the levels needed to boost sales.
Competition has only intensified, with rivals like Bloomingdale’s, Nordstrom, and designer brands opening their own stores, siphoning off customers and market share. Saks Fifth Avenue’s store count has fluctuated over the years, with aggressive expansion in the 1990s followed by waves of closures—moves that left the company with several underperforming locations. Recently, Saks closed stores in San Francisco and Palm Beach, as well as its women’s and men’s stores at Brookfield Place in Manhattan. The overlapping presence of Saks and Neiman Marcus in cities such as Chicago, Atlanta, Boston, Las Vegas, and Beverly Hills has fueled speculation that more closures are imminent.
Technology partnerships have also played a role in Saks Global’s recent history. Amazon, which helped finance the Neiman Marcus acquisition and powers Saks’ e-commerce platform, was seen as a potential long-term player in the luxury market. Now, that involvement is under scrutiny as the company’s future is debated in bankruptcy court. Authentic Brands Group, which has a luxury joint venture with Saks Global, is also said to be eyeing parts of the business and could make a move during the restructuring.
Perhaps most poignantly, the collapse of Saks Global is a cautionary tale for the entire luxury retail industry. Mergers between struggling giants are fraught with risk, as seen in the ill-fated union of Sears and Kmart. Integrating management, systems, and corporate cultures while both parties are underperforming can be fatal. For Saks Global, the combination of overwhelming debt, faltering vendor relationships, and a softening luxury sector proved too much to overcome.
As the bankruptcy process unfolds, the fate of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman hangs in the balance. Store closures, layoffs, and further restructuring are all but certain. For the fashion industry, the end of this high-wire act is both sobering and instructive, a reminder that even the most storied names are not immune to the forces reshaping retail in the 21st century.
