Saks Global's executive chairman Richard Baker planned to remove 500 to 600 brands from the portfolio. [8] In May 2025 Saks Fifth Avenue closed its Union Square, San Francisco location, citing the nearby Neiman Marcus. [9] In May 2025, industry sources reported that Costco warehouse club will be carrying Saks Fifth Avenue apparel in the coming months. [10] [11]
Financial difficulties
In February 2025, CEO Marc Metrick acknowledged the backlog of overdue payments to vendors, and promised outstanding invoices would be paid beginning in July 2025. As of August some vendors reported no progress. [12] Regarding overdue payments, Metrick stated: “We are largely in line with our payments with our brand partners. We need to move on from that part of the conversation.” In May 2025, Saks Global was seeking additional capital to sustain its finances while its bondholders, who faced almost $1 billion in losses, [13] began to question if they'll receive a single interest payment. [14] Industry experts reported that a successful 2025 holiday season would be crucial for the company. [15] [16]
In August 2025, Saks Global completed a debt restructuring that would allow for the company to raise up to $600 million in secured financing and a $2.2 billion exchange in senior secured notes. [17] On September 21, Saks Global announced that it was in early negotiations to sell a 49% minority stake of its Bergdorf Goodman brand for $1 billion in an effort to further reduce debt. The company stated that inflation and tariffs tampered with consumer demand, which resulted in this decision. [18]
Despite these attempts for a turnaround, by October 2025, Saks Global had reported a significant revenue loss in Q2 2025, losing more than 13% of revenue to $1.6 billion, down from over $2 billion in Q2 2024. The company claimed that inventory challenges contributed to these losses. [19] On November 13, Saks Global announced the closure of 9 underperforming Saks OFF 5TH locations in an effort to better optimize their store fleet. These stores are set to permanently close by January 2026. [20]
On December 23, Saks Global sold its 184,000-square-foot Neiman Marcus flagship in Beverly Hills to Ashkenazy Acquisition Corp., aiming to free up capital to pay down debt and reinvest in its core business. [21] That same day, the company warned that a $100 million debt payment linked to their acquisition of Neiman Marcus, would be due by December 31, and that it may not be able to continue operating as a "going-concern." The company stated that it would be seeking financial options that would help stabilize its business, including raising further emergency financing, asking lenders for additional liquidity, or a sale of its assets. Saks Global also stated that if they are unable to restructure their business, they will file for Chapter 11 bankruptcy protection as a last resort. [22] On December 28, Metrick warned that he would likely step down as CEO of the company by Q1 2026. [23]
On December 31, Saks Global skipped its $100 million debt payment with its bondholders. The company claimed that it is currently negotiating with its creditors to come up with a restructuring agreement. [24] That same day, Saks Global announced that it would be preparing to file for Chapter 11 bankruptcy within the coming weeks after missing its debt payment. [17] [25] On January 2, 2026, Metrick stepped down as CEO. [26]
On January 9, 2026, Saks Global announced that it would be filing for Chapter 11 bankruptcy protection by January 11, with plans to negotiate a restructuring deal within the coming weeks. [27]
US$7.4 billion (2024)
