'They need to go back to basics' - Customers react to Saks Global filing for bankruptcy

High-end department store conglomerate Saks Global filed for bankruptcy protection late on Tuesday (January 13) in one of the largest retail collapses since the pandemic, barely a year after a deal intended to create a luxury powerhouse brought Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus under the same roof.

The filing cast uncertainty over the future of the iconic U.S. luxury fashion brand, though Saks said early on Wednesday (January 14) that its stores would remain open for now after it finalized a $1.75 billion financing package and appointed a new chief executive.

Saks Global's assets and liabilities are estimated to be in a range of $1 billion to $10 billion, according to documents filed in the U.S. Bankruptcy Court in Houston, Texas.

The court process is meant to give the luxury retailer room to negotiate a debt restructuring with creditors or find a new owner. Failing that, the company may be forced to shutter. The company, in its filing, said demand is not the problem.

Saks Global, which has about 17,000 employees, raised $600 million and restructured debt in mid-2025 to deal with its financial woes. Persistent missed vendor payments and inventory disruptions left the company with severe liquidity constraints heading into 2026, it said.

The thinly stocked shelves may have driven shoppers away to rivals like Bloomingdale's, which reported strong sales in 2025, compounding pressure on Saks Global.

Running out of cash, Saks Global last month sold the real estate of the Neiman Marcus Beverly Hills flagship store for an undisclosed amount. It had also been looking to sell a minority stake in the exclusive department store Bergdorf Goodman to help cut debt.

The new financing deal would provide an immediate cash infusion of $1 billion through a debtor-in-possession loan from an investor group, Saks Global said. Reuters earlier reported the loan was led by Pentwater Capital Management in Naples, Florida, and Boston-based Bracebridge Capital.

Financing worth $240 million would be available through an asset-backed loan provided by the company's asset-based lenders, according to the company.

The luxury retailer will have access to $500 million of financing from the investor group once it successfully exits bankruptcy protection, expected later this year, Saks Global said.

It asked the court to delay the submission of the group's financial statements by 45 days to March 13, 2026.

Production: Aleksandra Michalska/Reuters