January 14, 2026 — In a move that signals a tectonic shift in the American retail landscape, Saks Global, the newly formed conglomerate housing Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, officially filed for Chapter 11 bankruptcy protection late Tuesday.
The filing, made in the U.S. Bankruptcy Court for the Southern District of Texas, comes just over a year after a blockbuster $2.7 billion merger intended to create a “luxury powerhouse.” Instead, the company crumbled under a mountain of debt, estimated between $1 billion and $10 billion, and a catastrophic breakdown in relationships with the world’s most prestigious fashion houses.
A Leadership Shakeup and a Lifeline
As part of the filing, the company announced a major pivot in leadership. Geoffroy van Raemdonck, the veteran former CEO of Neiman Marcus, has been appointed CEO of Saks Global effective immediately. He replaces Richard Baker, the executive chairman and architect of the Neiman Marcus acquisition, who had stepped into the CEO role only two weeks ago following the sudden resignation of longtime head Marc Metrick.
To keep the lights on, Saks Global has secured $1.75 billion in financing, including:
- $1 billion in debtor-in-possession (DIP) financing to maintain daily operations.
- $240 million in incremental liquidity from asset-based lenders.
- $500 million committed for when the company eventually exits bankruptcy.
Why the “Luxury Merger” Failed
Industry analysts point to a “perfect storm” of internal and external factors that led to this collapse:
- The Debt Trap: The 2024 merger was built on $2 billion in debt financing. When luxury sales began to contract globally in 2025, the interest payments became unsustainable, leading to a missed $100 million payment in late December.
- Fraying Vendor Trust: Saks Global reportedly struggled to pay its suppliers for over a year. Major creditors now include Chanel (owed $136 million), Kering (Gucci – $60 million), and LVMH ($26 million). Many brands had already begun withholding inventory, leaving shelves “thinly stocked.”
- The Shift to Direct-to-Consumer: High-end shoppers are increasingly bypassing department stores to buy directly from brand-owned boutiques or online platforms, leaving “middle-man” retailers like Saks in a vulnerable position.
- Economic Headwinds: Rising prices due to tariffs and a cautious consumer base have hit the “aspirational” luxury shopper hard, leading to double-digit sales declines across the Saks portfolio.
Here are the Frequently Asked Questions (FAQs) regarding the Saks Global bankruptcy filing, based on the news from January 14, 2026. These are designed to provide quick, clear answers for customers, employees, and industry followers.
## Saks Global Bankruptcy: Frequently Asked Questions
1. Which stores are affected by this filing? The bankruptcy filing includes Saks Global, the parent company that owns and operates Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.
2. Are the stores closing immediately?No. All Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman stores—along with their websites—remain open for business. The Chapter 11 filing is a legal restructuring process intended to keep the company operating while it addresses its debts.
3. What happened to the CEO?Geoffroy van Raemdonck (the former CEO of Neiman Marcus) has returned as the CEO of Saks Global. He replaces Richard Baker, who had stepped in temporarily after the resignation of Marc Metrick.
4. Can I still use my gift cards and loyalty points? Generally, during a Chapter 11 restructuring, companies ask the court for permission to continue honoring gift cards, returns, and loyalty programs to maintain customer trust. As of now, these programs are expected to continue functioning as usual.
5. Why did the company file for bankruptcy? The company faced a “perfect storm”:
- Massive Debt: Over $2 billion in debt from the 2024 merger.
- Vendor Disputes: Failure to pay luxury brands like Chanel and Gucci, leading to inventory shortages.
- Sales Slump: A global slowdown in luxury spending throughout 2025.
6. Is Amazon still involved? Yes. Amazon remains a minority investor in Saks Global. While the bankruptcy changes the financial structure, the technology and logistics partnership with Amazon is still a key part of the company’s long-term plan to modernize.
7. Will there be store liquidations? While the company has not yet announced a formal list of permanent closures, bankruptcy often involves closing underperforming locations to save costs. Further updates on specific stores are expected in the coming months.
8. Who are the biggest creditors? The company owes billions to various lenders and fashion houses. Some of the largest reported debts are to Chanel (approx. $136M), Kering/Gucci ($60M), and LVMH ($26M).
9. When will the bankruptcy end? The company has secured $500 million in “exit financing,” suggesting they hope to emerge from bankruptcy protection within the next 12 to 18 months, though the legal process can be unpredictable.
10. How does this affect online orders? Saks.com, NeimanMarcus.com, and BergdorfGoodman.com are still processing and shipping orders. The $1.75 billion in new financing is specifically intended to ensure digital and physical operations continue smoothly.