Saks Global Exits Bankruptcy With 49 Stores After $2.2 Billion Debt Reduction

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6.6.2026

Quick Facts

US Bankruptcy Judge approved Saks Global’s reorganization plan on June 5, reducing debt from $3.4 billion to $1.2 billion
Company will emerge with 49 luxury retail locations including 33 Neiman Marcus stores and 15 Saks Fifth Avenue stores
Nearly 720 brands have resumed shipping since bankruptcy filing, releasing $1.6 billion in retail receipts

Saks Global won court approval to exit Chapter 11 bankruptcy after a reorganization plan that cuts its debt by nearly 75%. US Bankruptcy Judge Alfredo Perez approved the plan on June 5, calling it an ‘extraordinary result.’

The company will emerge from bankruptcy within weeks with approximately $1.2 billion in debt, down from $3.4 billion. The restructuring includes a $750 million term loan and a $347 million ABL facility. Senior lenders provided $1 billion in new money through bankruptcy and will provide another $500 million after exit.

Saks Global will operate 49 luxury retail locations, including 33 Neiman Marcus stores and 15 Saks Fifth Avenue stores. The company closed most of its discount outlets to focus on its premium brands. Only 12 Saks Off 5th stores remain while 62 are closing or holding final sales.

The bankruptcy stemmed from operational problems following Saks’ $2.7 billion acquisition of Neiman Marcus in late 2024. The deal was financed partly with $2.2 billion in junk bonds, leaving insufficient liquidity to pay vendors consistently.

‘The biggest issue was the inability to provide merchandise for the stores,’ Judge Perez said. Low inventory due to unpaid invoices and troubled vendor communications contributed to the company’s 2025 financial troubles.

Since filing for bankruptcy, nearly 720 brands have resumed shipping to Saks Global stores. This restored vendor confidence released $1.6 billion in retail receipts, helping stabilize operations.

CEO Geoffroy van Raemdonck said the company is ‘initiating a series of actions to reinforce Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman as the ultimate destinations for luxury with a seamless multi-channel shopping experience.’

Saks Global projects $9 billion in total gross merchandise value by fiscal year 2030. The company expects to become profitable in three years with revenue growth averaging 7% annually starting next fiscal year. It will report a $135 million net loss for fiscal year 2026 but projects $99 million in net income by fiscal year 2029.

The case serves as a warning about debt-fueled consolidation in luxury retail. The company’s ability to execute growth projections and maintain restored vendor relationships will determine post-bankruptcy success.