Luxe retailer Saks files for bankruptcy

Saks Global Enterprises filed for bankruptcy to address mounting losses and a substantial debt load that has weighed down the iconic luxury retailer.The company, which operates its Saks Fifth Avenue stores along with Bergdorf Goodman and Neiman Marcus, entered Chapter 11 bankruptcy in Texas, it said in a statement.

Saks appointed former Neiman Marcus Group chief Geoffroy van Raemdonck as its new CEO and said it is evaluating its “operational footprint” to invest where there is the greatest long-term potential.The move comes just over a year after debt investors handed Saks billions of dollars of new debt to help fund its acquisition of Neiman Marcus. But within months of doing so, the debt tumbled to deeply distressed levels, and by the end of 2025, Saks skipped an interest payment to bondholders totalling more than $100 million.

Saks has secured approximately $1.8 billion in financing, including $1.5 billion from an ad hoc group of the company’s senior secured bondholders, according to Wednesday’s statement. Stores under the brands Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, and Saks OFF 5TH, will remain open, it added. The retailer expects to honour all customer programmes, make go-forward payments to vendors, and continue employee payroll during the Chapter 11 process, it said.BLOOMBERG