Luxury retailer Saks Global files for bankruptcy as it prepares to restructure
ABC News • • business
Key Points:
- Saks Global, owner of Saks Fifth Avenue, filed for Chapter 11 bankruptcy protection due to rising competition and heavy debt from acquiring rival Neiman Marcus over a year ago, securing approximately $1.75 billion in financing.
- The company plans to keep stores open and continue paying suppliers and employees while restructuring its debt, with new CEO Geoffroy van Raemdonck emphasizing the opportunity to strengthen the business.
- Saks’ acquisition of Neiman Marcus in 2024 for $2.65 billion worsened its debt amid weakening luxury sales, with global luxury goods expected to contract for a second consecutive year in 2026 due to economic concerns.
- The upscale department store sector has been volatile, with competitors like Neiman Marcus and Lord & Taylor
