Saks Global Prepares for Bankruptcy Amid Debt Crisis

New York City, NY — Saks Global Enterprises is reportedly preparing to file for Chapter 11 bankruptcy as it struggles with significant debt. The company, which owns Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus, and Bergdorf Goodman, faces a critical deadline with over $100 million in debt payments due at the end of December.

People familiar with the situation indicated that Saks has been exploring emergency financing options, including the potential sale of assets to bolster its cash reserves. However, bankruptcy may be the last option if other measures fail.

Recently, lenders were in confidential talks to assess Saks’ cash needs, discussing a possible debtor-in-possession loan aimed at stabilizing the company during bankruptcy proceedings.

In addition to financial turmoil, Saks Global’s Chief Executive Officer Marc Metrick may also be stepping down, as confirmed reports suggested on Tuesday. Metrick took leadership in December 2024 when Saks finalized its $2.7 billion acquisition of Neiman Marcus Group. This acquisition was intended to create a diversified luxury portfolio, but financial pressures have not eased since then.

To cope, Saks has closed several stores and cut jobs over the past year, including the majority of its Canadian locations. It plans to continue this trend of store closures in 2026 to optimize its footprint.

Additionally, in September, Saks was examining the sale of a 49% stake in Bergdorf Goodman for approximately $1 billion, with more than four potential bidders showing interest.

The financial struggles of Saks reflect broader challenges within the retail industry, with rising inflation and a weakening labor market affecting consumer spending on luxury goods.

Saks Global has not yet responded to requests for comment on the bankruptcy filing. Reuters reported that the company failed to make a crucial interest payment on its bonds, further complicating its financial situation.