Saks Global, the parent company of luxury retailers Saks Fifth Avenue and Neiman Marcus, filed for Chapter 11 bankruptcy protection in early 2026. The filing in the U.S. Bankruptcy Court for the Southern District of Texas followed a series of leadership changes, including the resignation of CEO Marc Metrick, a brief tenure by Richard Baker, and the appointment of Geoffroy van Raemdonck as CEO during the proceedings. The company attributed its financial challenges to a substantial debt load from its 2024 acquisition of Neiman Marcus and shifts within the luxury retail market.
Bankruptcy Filing and Leadership Transition
Saks Global initiated its voluntary Chapter 11 bankruptcy cases on a Tuesday in early 2026, marking what has been described as the first major retailer bankruptcy of the year. The company stated that the filing was undertaken with support from key financial stakeholders to facilitate an ongoing transformation.
The bankruptcy filing was preceded by significant leadership adjustments:
- In early January, Marc Metrick resigned as Chief Executive Officer of Saks Global, stating a desire to explore new professional opportunities. Metrick had a long tenure with Saks, joining in 1995. He took on leadership of Saks Fifth Avenue in 2015, was appointed CEO of Saks Fifth Avenue in 2021, and subsequently became CEO of Saks Global in 2024, leading the firm since its formation in July 2024.
- Following Metrick's departure, Richard Baker, who served as the company's executive chairman, was appointed Chief Executive Officer. Baker retained his role as executive chairman concurrently.
- Less than two weeks after his appointment, Mr. Baker departed the CEO position.
- Geoffroy van Raemdonck, formerly the chief of Neiman Marcus, assumed the role of CEO during the bankruptcy proceedings.
Financial Context and Company Formation
Saks Global was established in 2024 when Hudson's Bay Company (HBC), then parent of Saks Fifth Avenue, acquired Neiman Marcus for $2.65 billion. The integration of these luxury chains, which include Saks Fifth Avenue, Saks Off 5th, Neiman Marcus, and Bergdorf Goodman, was intended to enhance competitiveness against other retailers such as Nordstrom and Macy's-owned Bloomingdale's, and to create a dominant luxury entity to negotiate better terms with brands and attract shoppers.
The company accumulated a substantial debt load as a result of this acquisition. Reports cited a missed interest payment exceeding $100 million on debt associated with the Neiman Marcus merger, as well as an earlier missed debt payment related to the 2024 acquisition. Before the bankruptcy filing, reports also indicated that Saks experienced difficulties paying vendors.
Prior to the filing, Saks Global undertook measures to address its financial standing. In August, the company completed a $600 million notes offering to enhance its liquidity post-acquisition. In September, Reuters reported that Saks Global was exploring the sale of a minority stake in luxury retailer Bergdorf Goodman as a debt reduction measure. Other financial actions included the recent sale of Neiman Marcus' Beverly Hills flagship property and a debt restructuring planned for August 2025.
Bankruptcy Proceedings and Financing
Saks Global has secured $1 billion in debtor-in-possession (DIP) financing to fund its operations and turnaround initiatives during the bankruptcy process. An additional $500 million in financing has been agreed upon by a bondholder group, contingent on the company's emergence from bankruptcy.
During a U.S. Bankruptcy Court hearing in Houston, Judge Alfredo Perez authorized Saks to access $1.75 billion in new bankruptcy financing. The company had argued that without this financing, it would face immediate liquidation.
Amazon's Objection to Financing Plan
Amazon has formally requested a federal judge to reject Saks Global's bankruptcy financing plan. In court documents, Amazon asserted that Saks "burned through hundreds of millions of dollars in less than a year" and failed to uphold a previous agreement.
Key details of Amazon's claims include:
- In December 2024, Amazon invested $475 million in Saks Global. This investment was contingent on Saks selling its products on Amazon's website and Amazon providing technology and logistics support. Amazon contends that its equity investment is now "presumptively worthless."
- Saks subsequently launched a "Saks at Amazon" storefront and agreed to pay referral fees, guaranteeing at least $900 million to Amazon over eight years.
- Amazon alleges that Saks consistently failed to meet its financial projections and accumulated significant unpaid invoices.
- Amazon's filing argues that Saks' proposed bankruptcy financing plan adversely affects Amazon and other creditors by burdening parts of the Saks corporation with new debt, which could reduce Amazon's recovery from the proceedings.
Amazon indicated it might seek "more drastic remedies," such as the appointment of an examiner or a trustee, if its concerns remain unresolved. A ruling on Amazon's specific request to reject the financing plan is currently pending. Salesforce also became a minority shareholder in Saks during the Neiman Marcus acquisition.
Company Structure and Market Conditions
Saks Global operates as a multi-brand luxury retailer, including Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call, and Horchow. The company's retail portfolio comprises 70 full-line luxury stores, additional off-price locations, and five distinct e-commerce platforms. Saks Global Properties & Investments manages real estate holdings, including Saks Fifth Avenue and Neiman Marcus flagship properties, which collectively represent approximately 13 million square feet of prime U.S. real estate in luxury markets.
The company is navigating increased competition within the luxury goods sector. A November Bain & Co. study indicated that global sales of luxury goods may contract for a second consecutive year in 2026, a forecast attributed to consumer responses to price adjustments and broader global economic anxieties. Market observations have noted a shift in luxury consumer behavior towards direct-to-brand purchases and other retailers, with consumers expressing dissatisfaction regarding luxury market pricing and product quality.
Richard Baker's Background
Richard Baker's corporate background includes leadership in the Neiman Marcus acquisition. He has a real estate background, being an owner of National Realty & Development Corporation, and previously chaired the board of directors for Retail Opportunity Investments Corporation, which he converted into a Nasdaq-listed real estate investment trust. He also served as president of the Saks Fifth Avenue Foundation, established in 2017.