Saks Global Files Chapter 11, Secures $1.75B Lifeline

The filing occurred amidst cooling luxury demand and high financing costs, impacting debt-heavy retailers. Saks Fifth Avenue, the retail arm of Saks Global, listed between $1 billion and $10 billion in assets and liabilities in court documents filed in U.S. Bankruptcy Court in Houston.

The filing estimated between 10,001 and 25,000 creditors, including Chanel owed about $136 million, Gucci owner Kering owed about $60 million, and LVMH listed at $26 million. The $1.75 billion financing package includes a $1 billion debtor-in-possession loan and about $240 million of added liquidity from asset-based lenders, with a $500 million exit facility lined up for when it leaves Chapter 11 later this year.

Geoffroy van Raemdonck was named CEO, replacing Richard Baker, to lead the transformation, as stated by the company. Saks Global was built after Hudson’s Bay Co acquired rival Neiman Marcus in 2024 in a roughly $2.7 billion deal.

The company missed a $100 million interest payment due December 30, and some of its bonds traded at distressed levels, with first-lien bonds around 25 to 30 cents on the dollar, according to a bond investor cited by Reuters. While Chapter 11 provides breathing space, the restructuring's success depends on court approval of financing, sustained luxury brand inventory, and improved demand, otherwise store closures or liquidation are possible.

All stores and e-commerce operations across its various banners remain open.