The parent company of Saks Fifth Avenue, along with other luxury retail brands, has officially filed for Chapter 11 bankruptcy protection in the United States. The filing marks a significant upheaval at one of the nation’s most storied luxury retail groups.
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The company behind the iconic department store, Saks Global, submitted its bankruptcy petition on January 14, 2026, in the U.S. Bankruptcy Court for the Southern District of Texas. The move comes after heavy debt pressures, stemming in part from its high-profile acquisition of rival luxury retailer Neiman Marcus in 2024.
Saks Global’s bankruptcy filing allows the company to reorganize its finances while continuing to operate. Under Chapter 11, the firm can restructure its debt, negotiate with creditors and pursue new financing, rather than shutting down entirely. The company also secured approximately $1.75 billion in debtor-in-possession financing to sustain operations during the reorganization process.
As Always, Company Bankruptcy Filing Reflects The Industry That The Company Is In
Industry observers say the filing reflects broader challenges in the luxury retail sector, where rising debt and changing consumer habits have weighed on traditional department stores.
The restructuring plan includes strategic changes across its retail network. One of the most visible moves has been the planned closure of the majority of Saks OFF 5TH discount outlets, reducing that footprint sharply while keeping a handful of locations open to serve as clearance channels for excess inventory from Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.
Saks Global also underwent a leadership transition as part of its reorganization efforts. Former Neiman Marcus chief executive Geoffroy van Raemdonck took over the helm to guide the company through bankruptcy, succeeding previous executives who departed amid the restructuring.
Despite the filing, key brands under the Saks Global umbrella will remain operational. The company has stressed that it expects stores to stay open and that it aims to honour customer programs and supplier commitments as it works through the court-supervised restructuring.
Saks Fifth Avenue’s bankruptcy is one of the most prominent retail restructurings in recent years, shedding light on the ongoing pressures facing traditional luxury department stores in an evolving marketplace.