Saks Global files for bankruptcy after Neiman Marcus takeover leads to financial collapse
High-end department store conglomerate Saks Global filed for bankruptcy protection late on Tuesday in one of the largest retail collapses since the pandemic.Saks Fifth Avenue, an affiliate of Saks Global, listed $1 billion to $10 billion in assets and liabilities, according to court documents filed in US Bankruptcy Court in Houston, Texas.Saks Global did not respond to a request for further comment.The move cast uncertainty over the future of US luxury fashion barely a year after a takeover that brought Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus under the same roof.A retailer long loved by the rich and famous, from Gary Cooper to Grace Kelly, Saks fell on hard times after the COVID pandemic, as competition from online outlets rose, and brands started more frequently selling items through their own stores.Saks Global was close to finalizing a $1.75 billion financing package with creditors that would allow its stores to remain open, two people familiar with the negotiations told Reuters earlier on Tuesday.The financing would provide an immediate cash infusion of $1 billion through a debtor-in-possession loan from an investor group led by Pentwater Capital Management in Naples, Florida, and Boston-based Bracebridge Capital, the people said.An additional $250 million in financing would also be available through an asset-backed loan provided by the company’s banks, the people said.The luxury retailer would have access to another $500 million of financing from the investor group once it successfully exits bankruptcy protection, the sources added.A host of luxury brands were among the unsecured creditors, led by Chanel and Gucci owner Kering at about $136 million and $60 million, respectively, the court filing said.
The world’s biggest luxury conglomerate, LVMH, was listed as an unsecured creditor at $26 million.In total, Saks Global estimated there were between 10,001 and 25,000 creditors.In 2024, parent company Hudson’s Bay...