Saks Global, century-old high-end department store chain, files for bankruptcy

[ad_1] Saks International filed for chapter safety late Tuesday, in response to court docket paperwork entered in U.S. Chapter Court docket in Houston, throwing the way forward for the roughly century-old high-end division retailer chain into doubt. Saks International is the guardian firm of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.

Saks additionally stated it had secured a $1.75 billion financing package deal and that it might preserve its shops open because the chapter process performs out.

Saks not too long ago missed a debt fee stemming from a 2024 deal by its guardian firm, Hudson's Bay Firm, to purchase rival luxurious retailer Neiman Marcus for $2.65 billion, the Wall Avenue Journal reported in late December, citing individuals aware of the matter.

Swamped by debt Hudson's Bay raised $2 billion in debt to finish the Nieman Marcus deal, whereas Apollo International Administration associates offered an extra $1.5 billion in financing. Amazon additionally took a minority stake in Saks to facilitate the deal.

"The debt-fueled acquisition of Neiman Marcus all the time made chapter a possible vacation spot for Saks International," stated Neil Saunders, managing director of market analysis agency GlobalData. "The one actual shock has been the pace of the collapse, which has come barely a 12 months after the deal closed."

Saks additionally missed a greater than $100 million curiosity fee to bondholders, in response to the Journal, which stated the retailer has fallen behind on funds to distributors. Some suppliers have responded by withholding shipments, leaving Saks with thinner merchandise choices.

"The reality is that Saks International put itself in a financially precarious place that undermined the day-to-day operations of the enterprise. An absence of money meant suppliers went unpaid, this created stock gaps which then drove clients away and precipitated income and money technology to plummet," Saunders added.

New York-based Saks launched in 1924, opening its first retailer in Manhattan, in response to a historic account of the corporate posted on its web site. The corporate expanded shortly between the Nineteen Seventies and Nineties earlier than it was bought by Hudson's Bay in 2013. Saks's manufacturers embrace luxurious retailer Bergdorf Goodman, which was acquired as a part of the deal for Neiman Marcus; retailer Saks Off fifth, and residential furnishings vendor Horchow.

8,100 retailer closures Saks appointed former Neiman Marcus CEO Geoffroy van Raemdonck as its new CEO, efficient instantly. He succeeds Richard Baker, who stepped down from his function as Saks govt chairman and CEO on Jan. 13. Saks had introduced on Jan. 2 that Baker would succeed CEO Marc Metrick as chief govt.

"If there's one constructive from the chapter, it is that the earlier administration staff has been cleared out," Saunders stated. They bear accountability for the mess, and their repute with distributors and associates on the agency is totally tarnished."

Brick-and-mortar retailers face ongoing aggressive challenges from e-commerce and "fast-fashion" sellers equivalent to H&M and Uniqlo. Greater than 8,100 shops closed throughout the U.S. in 2025, up roughly 12% from the earlier 12 months, in response to retail trade analytics agency Coresight Analysis.