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From the CEO’s departure to unpaid debts: Saks heading for bankruptcy

From the CEO's departure to unpaid debts: Saks heading for bankruptcy Bad news for Saks: failure to pay back interest, the departure of the CEO, and the increasingly likely prospect of filing for Chapter 11 (the main bankruptcy law in the United States) have turned the former luxury giant into a textbook case. A structural crisis, aggravated by debt of nearly $5 billion and compromised profitability. Observers are openly saying that Saks is heading for bankruptcy. In the meantime, the group is trying to buy time: a $1 billion loan is reportedly on the table, which is essential to ensure business continuity, but investor confidence is at an all-time low and suppliers have been turning off the taps for months. Saks heading for bankruptcy The crisis facing the American holding company is nothing new: the acquisition of Neiman Marcus in 2024, celebrated as the birth of a new luxury retail giant, had already weakened a creaking financial structure, as total debt exceeded $4.7 billion, while operating costs skyrocketed. The latest quarterly results paint a clear picture: revenue down 11%, margins eroded by misaligned inventories, and a net loss rising to $288 million. In addition, Saks failed to meet the terms of payment of $100 million in interest to creditors (source: Pambianco). And internal restructuring continues to develop, as three days ago, CEO Marc Metrick announced his resignation. A lifeline? The other critical issue concerns the relationship with suppliers. In February, Saks extended payment terms from 60 to 90 days, promising installment plans for arrears. However, this move further undermined confidence in the supply chain, leading to delivery delays and repercussions on sales. In an attempt to generate liquidity, the group sold real estate assets and considered selling 49% of Bergdorf Goodman. At the same time, it sought new commercial avenues, from Amazon to a joint venture with Authentic Brands Group. The only lifeline now remains new financing: according to the Wall Street Journal, this would be $1 billion, which would include $750 million in new liquidity and the transformation of part of the existing debt. This is an extreme solution that would allow Saks to operate during the bankruptcy proceedings, provided that creditors agree to continue supporting it. Photo from Shutterstock
  • 12 Jan 2026
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Retail : USA

Bad news for Saks: failure to pay back interest, the departure of the CEO, and the increasingly likely prospect of filing for Chapter 11 (the main bankruptcy law in the United States) have turned the former luxury giant into a textbook case. A structural crisis, aggravated by debt of nearly $5 billion and compromised profitability….

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