Saks Global: A Century-Old Giant Seeks Bankruptcy

Saks Global, an esteemed luxury department store with nearly a hundred years of history, has submitted a bankruptcy filing in Houston's U.S. Bankruptcy Court, casting uncertainty over its future.

The predicament follows Saks’ failure to meet a deadline for a financial obligation tied to a significant 2024 transaction. This deal involved Saks' parent company, Hudson's Bay Company, acquiring Neiman Marcus for $2.65 billion, a move that didn't deliver the anticipated growth.

Financial Maneuvers

To facilitate this acquisition, Hudson's Bay amassed $2 billion through loans, supplemented by an additional $1.5 billion in financing courtesy of Apollo Global Management's affiliates. Additionally, Amazon acquired a minority interest in Saks Global to assist in executing the deal.

Recently, Saks failed to pay more than $100 million in interest owed to bondholders. This financial strain has led to arrears in vendor payments, prompting some suppliers to halt shipments and further straining Saks' inventory.

History and Expansion

Founded in 1924, Saks made its debut with a flagship store in Manhattan. The company experienced significant growth from the 1970s to the 1990s before Hudson's Bay acquired it in 2013. The acquisition included upmarket brands such as Bergdorf Goodman and Horchow, as well as the discount chain Saks Off 5th, bundled with Neiman Marcus.

Leadership and Challenges

In an executive reshuffle announced on January 2, 2026, Richard Baker, the executive chairman, was set to replace Marc Metrick as CEO. This move comes amid fierce competition from online retailers and rapid-fashion brands like H&M and Uniqlo, which have eroded traditional retail market share.

Retail stores across the nation faced closures in 2025, marking a 12% increase from the previous year, per analytics from the retail industry firm Coresight Research.