Saks Global Files for Bankruptcy After Debt-Fueled Neiman Marcus Deal
The parent of Saks Fifth Avenue and Neiman Marcus secures $1.75B in financing to continue operations as it brings in a new CEO to lead restructuring.
Saks Global, the parent company of iconic luxury retailers Saks Fifth Avenue and Neiman Marcus, filed for Chapter 11 bankruptcy protection late Tuesday, succumbing to a heavy debt load from its ambitious acquisition of rival Neiman Marcus in 2024.
The filing in the U.S. Bankruptcy Court for the Southern District of Texas marks a dramatic turn for the luxury conglomerate, which was created to unite several of high-end retail’s most storied names. The move follows months of financial pressure, which analysts at Forbes noted began to crystallize after the company missed a critical interest payment to bondholders last month.
Despite the bankruptcy filing, the company has emphasized plans for operational continuity. Saks Global has secured approximately $1.75 billion in debtor-in-possession (DIP) financing, which it will use to maintain business as usual. According to a statement reported by CBS News, all retail stores and e-commerce platforms under the Saks Global umbrella—including Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman—will remain open. The company also stated its intention to honor all customer programs, continue paying vendors, and maintain employee wages and benefits.
In a clear signal of a strategic overhaul, the company also announced a significant leadership change. Geoffroy van Raemdonck, who previously served as the chief executive of Neiman Marcus, has been appointed CEO of the combined Saks Global entity. The move is seen as an effort to install a leader with deep ties to the luxury market and experience navigating complex retail environments to steer the company through its court-supervised restructuring.
The bankruptcy comes as the broader luxury market faces significant headwinds after a post-pandemic boom. Recent analysis has pointed to a cooling in the "luxury supercycle," with a more discerning consumer emerging. Reports from late 2025 indicated a "K-shaped" divergence in spending, where ultra-wealthy shoppers continue to spend freely while aspirational luxury consumers, more sensitive to inflation and economic uncertainty, are pulling back.
The immense debt from the $2.7 billion acquisition of Neiman Marcus proved unsustainable against this shifting economic backdrop. While combining the retailers was intended to create a dominant force in American luxury, the leverage required has instead forced a radical restructuring.
Saks Global has stated it expects to emerge from bankruptcy later this year. The proceedings will be closely watched as a barometer for the health of the entire luxury sector, testing whether even the most iconic brands can weather company-specific debt crises amid a broader market normalization.