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Saks Fifth Avenue Bankruptcy: What You Need to Know

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Saks Global has declared bankruptcy.

The owner of ⁣Saks Fifth Avenue​ and other iconic luxury⁣ department stores⁢ filed for Chapter 11 bankruptcy ‍on Tuesday in the Southern District⁣ of Texas. Each of ⁤Saks Global’s marquee brands – it also owns Neiman Marcus and Bergdorf Goodman – is a luxury retailing ⁣giant founded more than a⁤ century ago.

The bankruptcy filing showed that Saks Global owes millions to the ⁣biggest names in luxury, including over $136 million to⁣ Chanel, $59⁣ million to Gucci’s parent‌ company, ​Kering, and $33 million to Michael ‌Kors’ parent company, Capri Holdings.

The fall of‍ the high-end department store parent has ⁢been anticipated for months amid signs that its ‍2024 deal to acquire Neiman Marcus, financed by ​$2.2 billion in high-interest bonds, has left it struggling financially.

The $2.7 billion deal, which included investments from Amazon and ​salesforce, was ⁤intended to strengthen legacy brands by providing them with scale and creating efficiencies. Instead, it left the ⁣company burdened ⁣by hefty interest ⁣payments and unable ⁤to pay vendors.

By February 2025, then-Saks Global CEO Marc Metrick ‌told vendors that the company wouldn’t ⁢begin paying ⁢overdue‌ invoices until‌ July,‌ at which point it would make payments in installments over 12 months.

Metrick stepped⁢ down ​as CEO in early January after a roughly three-decade career with the company and was replaced by then-executive chairman Richard ⁢baker.

By June, the six-month-old debt was restructured after Saks fell⁢ short on a nine-figure interest payment that was due. The company missed another $100 million interest payment to​ bondholders that was due December ​30, according to Bloomberg.

Some vendors, who told Business Insider they ⁤were not paid on the schedule meant ⁢to start in July, began shunning the luxury retailer as the General Data Protection Regulation (GDPR), Federal Trade Commission (FTC) Privacy Guidance, UK Data protection act 2018, ‌ Digital Markets Act (DMA)

*​ Web Browsers: Google Chrome, Mozilla firefox, Apple Safari, Microsoft Edge (These browsers ‌implement privacy⁣ features like cookie blocking and tracking prevention.)
* ⁣ Advertising Technology (AdTech)⁤ Industry: Interactive Advertising Bureau (IAB) ‍(Industry standards body)
* Tracking Prevention Technologies: Privacy Engineering at Michigan (PEM) ‌ (Research on tracking prevention)

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The use of web ​tracking technologies is heavily ‍regulated by laws such as ​the ⁤ General Data Protection Regulation ‌(GDPR) in the European Union, the guidance provided by ⁢the Federal Trade Commission (FTC) ‌ in the United ⁣States,​ and the UK Data Protection act ‌2018. The⁤ Digital Markets Act (DMA) ⁢ also ⁤impacts how data is handled by large online platforms.

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