Luxury department store conglomerate Saks Global filed for bankruptcy protection on Tuesday, marking one of the largest retail collapses since the COVID-19 pandemic. The bankruptcy comes less than a year after the merger that brought Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus under one corporate umbrella.
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Saks Global had been negotiating a $1.75 billion financing package with creditors that would have allowed stores to remain open, but the deal failed to materialize in time, sources familiar with the matter told Reuters. The company’s largest unsecured creditors include Kering, the owner of Chanel, at approximately $136 million, and Gucci at $60 million.
High-end department store conglomerate Saks Global filed for bankruptcy protection in one of the largest retail collapses since the pandemic, a year after a deal that brought Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus under the same roof https://t.co/rxEpMjSLqz pic.twitter.com/fAXRpbnQKg
— Reuters (@Reuters) January 14, 2026
The retail giant, long associated with Hollywood stars from Gary Cooper to Grace Kelly, faced mounting challenges in recent years. The pandemic accelerated competition from online retailers and prompted luxury brands to increasingly sell directly through their own stores.
In 2024, parent company Hudson’s Bay merged Saks with Neiman Marcus in a $2.7 billion deal, creating the current conglomerate. The merger relied on roughly $2 billion in debt financing and equity contributions from investors including Amazon, Salesforce, and Authentic Brands. Despite these efforts, the combined entity struggled to generate sufficient cash flow, leading to its bankruptcy filing.
The collapse casts uncertainty over the U.S. luxury retail sector, raising questions about the future of some of the country’s most iconic department stores. Bankruptcy proceedings will determine whether Saks Global can restructure and continue operations or if assets will be sold off to satisfy creditors.
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Industry analysts say the filing highlights the ongoing pressure on brick-and-mortar luxury retailers, as digital platforms and direct-to-consumer strategies reshape shopping habits.