Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, and Saks Off 5th, has officially filed for Chapter 11 bankruptcy protection. The move marks a pivotal moment in the erosion of traditional high-end retail, driven by shifting consumer behavior and mounting financial strain.
- Saks Global filed for Chapter 11 bankruptcy on January 14, 2026, with $2.1 billion in debt and $1.8 billion in liabilities.
- The company operates Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, and Saks Off 5th across 110 U.S. locations.
- Revenue dropped 37% from 2022 to 2025, with same-store sales declining four quarters in a row.
- Up to 30 stores may close or be restructured, impacting thousands of employees.
- Failed $750 million refinancing attempt in late 2024 contributed to financial collapse.
- Industry-wide trend: 34% of U.S. high-end department store chains have closed or restructured since 2020.
Saks Global has initiated Chapter 11 bankruptcy proceedings, citing over $2.1 billion in outstanding debt and more than $1.8 billion in liabilities. The filing, announced on January 14, 2026, includes the operational restructuring of its flagship brands—Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, and Saks Off 5th—across 110 U.S. locations. The company cited a decade-long decline in foot traffic, accelerated by digital-first shopping habits and the post-pandemic shift toward value-driven consumption. The bankruptcy filing reflects broader challenges across the luxury retail sector, where 34% of high-end department store chains have either shuttered or entered restructuring since 2020. Saks Global’s revenue dropped by 37% between 2022 and 2025, with same-store sales declining for four consecutive quarters. The company had previously attempted a $750 million debt refinancing in late 2024, which failed to secure sufficient investor backing. Investors and creditors are now grappling with the implications of the restructuring. The company’s secured lenders, including a consortium led by Apollo Global Management, are expected to play a central role in the reorganization process. Store closures are anticipated, with up to 30 locations likely to be liquidated or converted into outlet spaces. Employees at affected stores are bracing for potential job losses, with union representatives already engaging in negotiations. The collapse of Saks Global could trigger further instability in the luxury retail ecosystem. Competitors such as Macy’s and Nordstrom have reported declining luxury category performance, while private equity-backed retailers like Saks’ former parent company, Hudson’s Bay Company, are reassessing their U.S. expansion strategies.