Saks Global, the longtime leader of luxury department stores, files for bankruptcy protection

[mahatmakanejeeves]

Source: CNBC

Retail
Saks Global, the longtime leader of luxury department stores, files for bankruptcy protection

Published Wed, Jan 14 2026 3:34 AM EST
Updated 4 Hours Ago

Gabrielle Fonrouge
@fonrougegab
@in/gabrielle-fonrouge

KEY POINTS
* Saks Global, the parent company behind Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, has filed for bankruptcy protection.
* The company has been running out of cash and struggling to pay its bills since its acquisition of Neiman Marcus for $2.7 billion in 2024.
* Saks had struggled to line up bankruptcy financing because some investors were concerned the company won't be able to successfully reorganize, CNBC previously reported.


Shoppers walk outside the Saks Fifth Avenue flagship store in Manhattan in New York City, U.S., Jan. 6, 2026.
Angelina Katsanis Reuters

Saks Global, the parent company behind the 159-year-old department store that's become both a destination and a symbol for luxury fashion, filed for bankruptcy protection after running out of cash and failing to find investors willing to finance its business. ... Crucially, the retailer filed for Chapter 11, which will give it the chance to reorganize its business, clear through its debts and potentially find a buyer willing to take it on as a going concern.

The company announced Wednesday that former Neiman Marcus CEO Geoffroy van Raemdonck will immediately take over as chief executive, replacing Richard Baker, who had been in the job for just two weeks. ... Saks also announced it had secured a financing commitment of around $1.75 billion in a bid to strengthen its balance sheet.

As recently as last week, Saks was having trouble lining up as much as $1 billion in financing for a so-called debtor-in-possession loan, which provides the funds to keep a business running during Chapter 11 proceedings, CNBC previously reported. If Saks hadn't lined up the DIP loan, it made a Chapter 7 liquidation filing more likely.

A bankruptcy filing for Saks Global has been seen as inevitable for weeks after the company missed an interest payment to bondholders late last month. What is still unclear is what will happen to the company and the nearly 200 doors under its umbrella across Saks' namesake stores and its off-price chain, along with Neiman Marcus and Bergdorf Goodman.

{snip}

Read more: https://www.cnbc.com/amp/2026/01/14/saks-global-files-for-bankruptcy-protection.html

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Hat tip, Joe.My.God.

https://www.joemygod.com/2026/01/luxury-retail-group-saks-global-files-for-bankruptcy/

[BumRushDaShow]

1. They have been drip drip drip warning about this for months

They might go the way of Lord & Taylor.

We used to have a small local chain here in Philly (that I blame you for triggering a looooooooooonnnnnnnnggggggg suppressed memory of) - the Blum stores. It was similar to Bonwit's but went bye bye awhile ago.

The very wealthy can afford to hire their own designers and/or buy overseas luxury items.

[mwmisses4289]

3. Like many of us, the super wealthy probably do most of their shopping online.

If you believe the ads for sites like temu or shein, that's where they shop.

[bucolic_frolic]

2. Saks has been a wheeler-dealer since the 1980s

They bought Hess stores in the south, sold some to Dilliard's, sold some to BonTon which ultimately collapsed.

Major remaining US department stores include Macy's, Nordstrom, JCPenney, and Kohl's, alongside luxury players like Bloomingdale's (which is part of Macy's). Dillard's & Belk too.

Google AI: "J.C. Penney is owned by Catalyst Brands, a joint venture formed in January 2025 that merged JCPenney with SPARC Group. The key shareholders of Catalyst Brands, who originally bought JCPenney out of bankruptcy in 2020, are Simon Property Group, Brookfield Corporation, and Authentic Brands Group.

Initial Acquisition: Simon Property Group and Brookfield acquired JCPenney in 2020 after the retailer filed for bankruptcy, aiming to keep it as a key mall tenant.
Merger with Sparc Group: In 2025, JCPenney combined with Sparc Group (owned by Authentic Brands, Shein, Simon, and Brookfield) to create Catalyst Brands.
Catalyst Brands: This new entity also includes other brands like Brooks Brothers, Aéropostale, and Eddie Bauer, with JCPenney's private labels integrated.
Leadership: Marc Rosen, former JCPenney CEO, leads Catalyst Brands. "

So retailers are dwindling, though brands have been salvaged if they are unique. Nordstrom's went private in 2025. Macy's is downsizing, Kohls' had a good 2025, it appears their independent stores absent malls was a good bet.

[Auggie]

4. Consumers attitudes have shifted, and for the better IMO

Younger generations realize that implied value is mostly bullshit and the older generations who set the precedent have aged out. Same with high-end wine. Throw in the convenience of e-commerce, and brick and mortar luxury is no longer a sustainable business model. Not at the level that Saks and Neiman Marcus have been operating, at least.