Saks Fifth Avenue Bankruptcy Update

Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, filed for Chapter 11 bankruptcy protection on January 14, 2026, in the Southern District of Texas. The filing followed years of financial strain stemming from a $2.7 billion acquisition of Neiman Marcus in 2024, which saddled the company with unsustainable debt, including high-interest junk bonds.

Despite the bankruptcy, Saks Fifth Avenue stores remain open as the company enters a reorganization process. On January 14, Saks Global announced a $1.75 billion financing package—including a $1 billion immediate loan and commitments from bondholders—to stabilize operations and fund turnaround initiatives.

Leadership changes were also confirmed: Geoffroy van Raemdonck, former CEO of Neiman Marcus, replaced Richard Baker as CEO. Van Raemdonck took over immediately, aiming to restructure the business under new ownership or through a sale.

While no immediate liquidation is expected (unlike the 2019 collapse of Barney’s), store closures are likely as part of the restructuring. The company has already closed locations, including Saks Fifth Avenue’s San Francisco flagship and several Saks OFF 5TH stores, and plans further optimization in 2026.

Unsecured creditors, including luxury brands like Chanel, Kering, LVMH, and Gucci, are owed millions and may not be paid in full. The bankruptcy process will determine whether Saks Global reemerges as a viable entity or is sold off in parts.

Key takeaway: Saks Fifth Avenue is not shutting down permanently, but its future depends on successful restructuring, asset sales, and securing new investment.