Saks Global Files for Bankruptcy Protection Following Struggle with Massive Acquisition Debt

Saks Global Files for Bankruptcy Protection Following Struggle with Massive Acquisition Debt

2026-01-14 companies

New York, Wednesday, 14 January 2026.
Just a year after acquiring Neiman Marcus, the luxury giant entered Chapter 11, securing a critical $1.75 billion financing package to keep stores open while restructuring operations.

Saks Global Files for Bankruptcy Protection Following Struggle with Massive Acquisition Debt

Saks Global has officially filed for Chapter 11 bankruptcy protection, confirming the severe liquidity crisis we reported on recently (see our previous coverage: “Saks Global Nears $1.75 Billion Funding Deal” [https://wsnext.com/9aabd27-Saks-Global-Bankruptcy/]). The filing, submitted late Tuesday, January 13, 2026, exposes the immense financial strain caused by the conglomerate’s 2024 acquisition of Neiman Marcus [1][5]. While the company has secured the previously anticipated financing to maintain operations, the move triggers an immediate leadership overhaul and signals upcoming store closures for the luxury retail titan [3][7].

Financing the Restructuring

To navigate this insolvency, Saks Global has finalized a $1.75 billion financing package to sustain operations during the court-supervised process [1]. This capital injection includes a $1 billion debtor-in-possession (DIP) loan provided by a consortium led by Pentwater Capital Management and Bracebridge Capital, along with $250 million in asset-backed loans from existing banking partners [1][4]. The agreement also structures a further $500 million in financing to become available upon the company’s successful exit from bankruptcy protection [1]. This liquidity is essential for the retailer to pay vendors and restock inventory, a critical need as suppliers had reportedly ceased shipping goods prior to the filing due to missed payments [2][4].

Unsecured Creditors and Leadership Shakeups

The bankruptcy petition reveals a staggering liability load, with the company listing assets and liabilities between $1 billion and $10 billion spread across 10,001 to 25,000 creditors [1]. High-profile luxury houses are among the most exposed unsecured creditors; Chanel is owed approximately $136 million, while Kering and LVMH have outstanding claims of roughly $60 million and $26 million, respectively [1]. This debt accumulation is largely attributed to the leveraged nature of the $2.7 billion merger with Neiman Marcus orchestrated in 2024, which saddled the combined entity with debt obligations it ultimately could not service [1][5].

Strategic Restructuring and Store Closures

The restructuring plan focuses on reorganizing the business rather than a total liquidation, but the physical footprint of the retailer will shrink [7]. Van Raemdonck’s strategy involves closing a portion of Saks Fifth Avenue’s 33 locations and Neiman Marcus’ 36 stores, as well as conducting a review of approximately 100 Saks Off 5th outlets [3]. These closures are expected to commence roughly 30 days from the January 14 filing date [7]. The objective is to stabilize the balance sheet and reassure vendors, allowing the remaining storefronts to operate effectively during the Chapter 11 process [4].

Sources


Bankruptcy Luxury retail