Saks Global files for bankruptcy amid debt from Neiman Marcus deal

Saks Global Holdings LLC filed for Chapter 11 bankruptcy protection and said it secured a US$1.75-billion financing package from senior bondholders and lenders.

Saks Global Holdings LLC has filed for U.S. Chapter 11 bankruptcy protection. The company owns Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman. It was formed in December 2024 after HBC acquired Neiman Marcus and spun off its U.S. assets. The company had taken on substantial debt tied to that acquisition and fell behind on vendor and interest payments, and its executive chairman and CEO, Richard Baker, stepped down. Key facts: - The bankruptcy filing was made in the U.S. Bankruptcy Court for the Southern District of Texas, with filings estimating assets and liabilities each in the US$1-billion to US$10-billion range. - Saks said it secured a US$1.75-billion financing package from senior bondholders and lenders, including US$1.0 billion in debtor-in-possession financing to keep stores open during Chapter 11. - The company missed an interest payment at the end of December and has used real-estate sales as a source of cash in recent periods. - Court documents show large unsecured claims to suppliers, with the top 30 unsecured creditors owed just over US$700 million in total. Summary: The Chapter 11 filing is intended to let Saks Global pursue a restructuring of its operations while maintaining liquidity and store operations under debtor-in-possession financing. The company stated additional financing would become available once it emerges from bankruptcy, and it expects emergence later this year according to the announcement.