What’s happening
Saks Global—the parent of Saks Fifth Avenue and Neiman Marcus—is preparing to file for Chapter 11 bankruptcy protection after missing an interest payment exceeding $100 million, according to The Wall Street Journal’s reporting cited by Reuters.
Reuters separately reported that Saks Global’s financial strain has become acute enough that CEO Marc Metrick stepped down, with Executive Chairman Richard Baker taking over amid reports the company is preparing for bankruptcy.
How Saks Global got here
Saks Global was formed in July 2024 after Hudson’s Bay combined Saks Fifth Avenue with its roughly $2.65 billion acquisition of Neiman Marcus, pitching scale and cost synergies to compete in an increasingly fragmented luxury market.
But the combined group carried a heavy debt load. Reuters reported that in August 2025 the company completed a restructuring that included about $600 million in new money and an exchange involving its $2.2 billion senior secured notes—steps meant to stabilize liquidity but not eliminate the core leverage problem.
Credit analysis at the time also documented the exchange mechanics and the scale of the secured notes package, underscoring how central the debt stack is to the group’s capital structure.
Why it matters
1) A stress test for luxury’s “multibrand” middle
Department-store-style luxury retail sits between brand-owned boutiques (with more direct pricing power) and off-price channels (with clearer value propositions). Analysts cited by Reuters said the Saks–Neiman combination struggled as luxury shoppers shifted toward rivals and brand-owned outlets—making cash generation harder just as interest costs rose. Reuters
2) Vendor and inventory dynamics can turn quickly
When a large retailer’s credit is questioned, suppliers often tighten shipment terms—risking a negative loop of less inventory → weaker sales → tighter liquidity. Business Insider’s reporting on the company’s recent year described vendor strain and operational stress following missed payments and financing complications.
3) Spillovers to landlords and retail credit
A Chapter 11 process at a marquee luxury chain can ripple through mall and high-street landlords via renegotiated leases and store rationalization. It also becomes a pricing reference point for leveraged retail credit, particularly for rollups that relied on cheap financing during earlier rate cycles.
What to watch next
Debtor-in-possession (DIP) financing terms: the cost and covenants will reveal how lenders view recovery value.
Treatment of vendors and brands: whether suppliers are protected or pushed down the stack will shape inventory health.
Asset sales: Saks has previously explored monetizations (including stakes in marquee assets) as a deleveraging lever.