Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, is moving through Chapter 11 bankruptcy proceedings in an effort to stabilize a business weighed down by debt and years of retail disruption.
The company filed for bankruptcy protection in January in the U.S. Bankruptcy Court for the Southern District of Texas. Since then, it has announced plans to close eight Saks Fifth Avenue stores and one Neiman Marcus location later this year. The Saks stores set to close are in Alabama, Ohio, New Jersey, Louisiana, Pennsylvania, Arizona, Virginia and Oklahoma. The Neiman Marcus store in Boston will also shut down.
In addition, Saks Global is closing 14 Fifth Avenue Club personal styling locations and winding down most of its off-price operations, including Saks Off 5th and Neiman Marcus Last Call. In total, 57 stores are being eliminated as part of what the company describes as an effort to streamline operations and focus on full-price luxury retail and digital growth. Bergdorf Goodman stores are not slated for closure.
The restructuring follows a period of financial strain that intensified after Saks Global acquired Neiman Marcus in 2024 in a deal valued at about $2.7 billion. The transaction combined two of the country’s most recognizable luxury department store chains but also added significant borrowing. By late 2025, the company missed a $100 million interest payment, a default that pushed it toward bankruptcy protection.
Court filings show Saks Global reported between $1 billion and $10 billion in assets and liabilities. The company has secured approximately $1.75 billion in financing commitments, including debtor-in-possession funding, to continue operations during the restructuring process.
Saks Fifth Avenue traces its roots to 1867, when Andrew Saks opened his first store in Washington. The flagship on Fifth Avenue in New York opened in 1924 and became a symbol of American luxury retail. Neiman Marcus, founded in Dallas in 1907, built a reputation for high-end merchandise and customer service. Bergdorf Goodman has long operated as a luxury destination in Manhattan.
In recent years, traditional department stores have faced pressure from changing consumer habits, declining mall traffic and competition from online retailers. Saks Global previously separated its e-commerce and physical store operations into distinct entities in an effort to attract investment and adapt to the shift toward digital shopping.
The company’s financial challenges have also affected employees and vendors. Hundreds of corporate positions have been eliminated, and a fulfillment center in Tennessee was closed. Some vendors reported delayed payments as the company sought to manage cash flow.
The bankruptcy process is intended to reduce debt and create a leaner operating structure. Former Neiman Marcus Chief Executive Geoffroy van Raemdonck, who previously led that retailer through its own 2020 bankruptcy, is now leading Saks Global’s restructuring effort.
Company officials have said they aim to emerge from Chapter 11 in 2026 with a stronger balance sheet and a more focused store footprint. The remaining off-price outlets will serve as an outlet channel for excess inventory from Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.
For many communities, the announced store closures represent the loss of long-standing retail anchors. For the company, the restructuring marks a pivotal attempt to preserve historic brands while adapting to a rapidly evolving retail landscape.
Whether the effort succeeds will depend on Saks Global’s ability to rebuild vendor confidence, manage its debt and compete in a luxury market that increasingly blends in-store experience with online convenience.
