Shoppers on the hunt for luxury at a discounted price may be in luck as Saks could be gearing up for a massive wave of markdowns.
Just days ago, Saks Global, which oversees Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, officially filed for Chapter 11 bankruptcy protection. The filing does not mean the stores are shutting down overnight. Chapter 11 allows the company to continue operating while restructuring its finances. Saks Global has already secured $1.75 billion in new financing, and additional revenue from Saks merchandise sold through Amazon is helping keep operations running in the short term.
For customers, this period often brings aggressive clearance sales. Previous store shutdowns featured discounts reaching up to 85 percent. At the flagship Fifth Avenue location, 70 percent off signs are already posted, leaving shoppers wondering whether more deals are on the way or if this is simply routine inventory cleanup.
The company is carrying roughly $3.4 billion in debt, much of it connected to the December 2024 purchase of Neiman Marcus. Bankruptcy court documents filed in Houston estimate Saks Global’s assets and liabilities could fall anywhere between $1 billion and $10 billion, highlighting the scale of the challenge ahead.
With around 70 luxury locations across the United States, cost-cutting appears inevitable. Nine Saks Off 5th stores have already closed, including the Upper East Side location on East 57th Street. Industry reports earlier this month also suggested that about 20 more stores nationwide could be considered for closure.
