The quiet cracks inside luxury retail just turned into a full shakeup, and one of the most recognizable names in American shopping is now staring down a courtroom clock. Saks Global is preparing to file for Chapter 11 bankruptcy within days after missing a major interest payment tied to the debt it took on to acquire Neiman Marcus, according to people familiar with the matter.
The missed payment was more than $100 million and was due to bondholders on Tuesday, a failure that pushed the company closer to a formal restructuring. Since loading up on debt in 2024, Saks has struggled to stabilize its finances. Delayed payments to vendors have thinned merchandise selections, which in turn has weighed on sales. Over the past year, the company tried to buy time by raising cash through asset sales, including unloading a Beverly Hills property. It also explored selling a 49 percent stake in Bergdorf Goodman, one of the crown jewels from its $2.7 billion merger.
Now, Saks is in active talks with creditors about financing that would carry it through the bankruptcy process. The company declined to comment.
If the filing goes forward, it would be the most high-profile department store bankruptcy since the Covid-19 era. Saks, Neiman Marcus, Bergdorf Goodman, and Saks OFF 5th were combined to form what executives hoped would be a luxury retail powerhouse. Instead, the debt load proved too heavy.
What happens next likely depends on how willing creditors are to restructure and whether iconic assets get sold to keep the lights on. The brands may survive, but the ownership and shape of luxury retail could look very different on the other side.
