Saks Global declares bankruptcy. What does it mean for shoppers?
ABC News • • business
Key Points:
- Saks Global, owner of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, filed for Chapter 11 bankruptcy due to heavy debt and shifting retail dynamics, signaling a need for new ownership and potential store closures during reorganization.
- Key factors driving the bankruptcy include a debt-fueled acquisition of Neiman Marcus, the rise of online direct-to-consumer sales, and declining demand for high-priced luxury goods among some shoppers.
- The growing popularity of e-commerce and social media influencers has shifted consumer behavior away from traditional department stores, with luxury brands increasingly selling directly to customers.
- Saks Global's acquisition of Neiman Marcus in late 2024, funded by $2.6 billion in debt, led to strained vendor
