Saks Global, parent company of Neiman Marcus and Bergdorf Goodman, has filed for Chapter 11 bankruptcy protection after exhausting its liquidity reserves. The move marks a pivotal moment for two iconic luxury retail brands facing sustained financial pressure.
- Saks Global filed for Chapter 11 bankruptcy due to exhausted cash reserves
- Outstanding debt totals $1.3 billion, including $420 million in secured loans
- Neiman Marcus and Bergdorf Goodman remain operational under court supervision
- Company reported a $340 million net loss in Q3 2025, a worsening of prior year's loss
- Up to 25 stores may be closed as part of restructuring efforts
- Secured creditors will play a central role in post-bankruptcy governance
Saks Global has initiated Chapter 11 bankruptcy proceedings in the United States, citing a complete depletion of available cash reserves. The company, which owns and operates Neiman Marcus and Bergdorf Goodman, stated that it was unable to meet current financial obligations despite ongoing restructuring efforts. The filing follows a period of declining foot traffic, shifting consumer preferences toward e-commerce, and rising operational costs across its physical retail footprint. The company reported $1.3 billion in outstanding debt, with $420 million in secured borrowings and $880 million in unsecured liabilities. Its most recent quarterly earnings, released in October 2025, showed a $340 million net loss, a sharp decline from the prior year’s $110 million loss. Revenue dropped 17% compared to the same period in 2024, primarily driven by store closures and reduced luxury goods demand in key markets including New York, Chicago, and Los Angeles. The bankruptcy filing triggers immediate operational changes, including the potential closure of up to 25 underperforming locations and the restructuring of vendor contracts. Neiman Marcus and Bergdorf Goodman will continue operating under court supervision, with plans to liquidate select inventory and renegotiate leases. Employees across the three brands may face temporary furloughs or reduced hours during the transition period. Investors and creditors are expected to play a key role in shaping the company’s future, with secured lenders holding significant influence over asset sales and refinancing strategies. The outcome will determine whether the brands can emerge as standalone entities or undergo a larger consolidation under new ownership.