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Saks Global Bankruptcy: Luxury Retail Chain Faces Collapse

Saks Global Files for ⁤Bankruptcy

Saks Global, the luxury retail chain, filed for Chapter 11 bankruptcy protection late Tuesday, January 13, 2026. ⁣This marks one of the largest retail collapses as the pandemic, coming less than a year after a similar filing by Saks Fifth Avenue and⁢ Bergdorf Goodman.

Background

Saks Global operates luxury department stores and e-commerce platforms. The company struggled⁣ with declining sales, increased competition‌ from online retailers,⁢ and a heavy debt load. According to court filings in the U.S.Bankruptcy​ Court for the southern District of New york (Case Number 26-10045), saks Global listed both ​assets and liabilities in the ‍range of $500 ‌million to $1 billion. The filing aims to restructure approximately $800 million in debt.

Recent Developments

In ⁢July 2024, the Hudson’s bay Company (HBC) sold‍ Saks Fifth Avenue to Brookfield Asset Management and Rhône Capital. This sale was intended ⁣to separate the luxury department store from HBC’s ⁢other⁣ holdings, but​ Saks Global, which operates‍ independently, continued to face financial challenges. The bankruptcy filing does not include Saks Fifth Avenue or bergdorf Goodman, which are now operated under‍ separate ownership.

impact and Future‌ Outlook

Saks Global intends to continue operating its‌ stores and online platforms during the ⁤restructuring ‍process. The company has secured $250 million in⁣ debtor-in-possession (DIP) financing from existing lenders to support its⁤ operations.According to a statement released by ⁣Saks Global CEO, Mark Cohen, the restructuring will⁣ allow the company ⁤to “streamline operations,⁢ reduce debt, and‌ invest in its ⁣future growth.” ⁣ The company anticipates emerging from bankruptcy ⁢within six to nine months.

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