- Saks Global filed for Chapter 11 protection in the US Bankruptcy Court for the Southern District of Texas late Tuesday.
- The filing follows the company’s roughly $2.65 billion acquisition of Neiman Marcus, a deal financed heavily with debt.
- Senior leadership turned over rapidly before the filing; former Neiman Marcus chief Geoffroy van Raemdonck was appointed to lead the restructuring.
- Cash-flow strains included persistent late vendor payments, with Days Beyond Terms well above industry averages.
- The company secured $1 billion in debtor-in-possession financing and a $500 million commitment from a bondholder group upon emergence.
Saks Global filed for Chapter 11 late Tuesday in the US Bankruptcy Court for the Southern District of Texas, marking the first major U.S. retail collapse of 2026. The filing comes just over a year after the company completed its $2.65 billion purchase of Neiman Marcus, a transaction that was financed largely with debt and has strained operations.
Company leadership changed quickly in the weeks before the filing. CEO Marc Metrick stepped down in early January and executive chairman Richard Baker briefly assumed the role before leaving. The company named former Neiman Marcus chief Geoffroy van Raemdonck to lead the restructuring.
“This is a defining moment for Saks Global, and the path ahead presents a meaningful opportunity to strengthen the foundation of our business and position it for the future…” Van Raemdonck said, emphasizing a focus on customers and luxury brands.
Shifts in consumer behavior and pricing pressures weighed on sales. Many luxury shoppers now buy directly from brands, and some consumers cite higher prices for perceived lower quality at department stores. Economic concerns also affected sentiment; a recent poll found many Americans blame the White House for harming the economy while inflation held at 2.7% in December.
Vendor relations deteriorated as cash-flow issues grew. Ragini Bhalla of Creditsafe noted Days Beyond Terms data showing persistent late payments well above the industry average of 10-12 days, ranging from 27 days in November 2024 to 41 days in January and March 2025. Some vendors stopped shipments, reducing inventory and sales.
To support operations during restructuring, Saks Global secured $1 billion in debtor-in-possession financing and a bondholder group agreed to provide an additional $500 million once the company emerges. Glenn McMahon of MAC Advisory and Consulting said restructuring could allow the company to close underperforming locations and streamline operations.
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