Luxury retail giant Saks Global Enterprises is actively considering a Chapter 11 bankruptcy filing as a last-resort option, according to sources familiar with the matter. The company faces a pressing liquidity crisis with a debt payment exceeding US$100 million due on December 30, 2025.
A Turnaround Plan That Backfired
The potential bankruptcy marks a dramatic reversal for the retailer, which just last year raised billions from bond investors to fund an ambitious transformation. The centerpiece of this plan was the acquisition of rival Neiman Marcus, a move intended to create a dominant luxury powerhouse with backing from high-profile tech investors like Amazon.com Inc. and Salesforce Inc.
Instead of reviving the business, the deal significantly increased Saks's debt load. It also failed to resolve ongoing disputes with vendors, many of whom halted shipments after missed payments. This exacerbated the company's inventory challenges and accelerated financial losses.
Exploring All Avenues for Survival
Alongside the bankruptcy evaluation, Saks is reportedly weighing other emergency measures to improve its cash position. These include seeking new emergency financing and selling assets. Confidential talks have also occurred among some of the company's lenders to assess cash needs and discuss a potential debtor-in-possession (DIP) loan, a specialized form of funding used in bankruptcy proceedings.
The company's financial distress is starkly reflected in the market value of its debt. Notes restructured in August 2025 were recently quoted at about 6 cents on the dollar, a catastrophic drop from roughly 36 cents just two weeks earlier. More senior debt was trading at around 46 cents.
From Canadian Ownership to a Struggling Global Entity
Saks has deep Canadian roots, having previously been owned by the historic Hudson’s Bay Company. HBC itself liquidated store locations in 2025 after its own restructuring efforts. The Neiman Marcus transaction created Saks Global, a portfolio meant to include Saks Fifth Avenue, Saks Off 5th, Neiman Marcus, and Bergdorf Goodman.
Following a debt restructuring in June 2025 that reshuffled repayment priorities, Saks was forced in October 2025 to cut its full-year sales guidance. The company cited declining sales linked to inventory problems and continued delays in vendor payments as it scrambled to conserve cash.
In a statement, a Saks representative said, "Together with our key financial stakeholders, we are exploring all potential paths to secure a strong and stable future for Saks Global and advance our transformation while delivering exceptional products, elevated experiences and personalized service to our customers." The company's advisor, PJT Partners, declined to comment.
